RLinda ! USDJPY-> the price is in the risk zone. Short or long?

22 Sep 2022

The USDJPY is making new highs on the Fed Funds rate update, but on the retest we see a strong fall.

The Bank of Japan will not change the key parameters of the monetary policy at the meeting on September 21-22 despite the strengthening of inflation in the country.
The desire of the Japanese bank to maintain a soft monetary policy runs counter to the Federal Reserve System.
The divergence in the monetary policy of the Bank of Japan and the Federal Reserve contributed to the yen's fall to a 24-year low against the U.S. dollar

I assume that since the price forms a highly volatile movement against an important support zone, we have two possible scenarios: the short one is if the price fixes under the resistance of the global uptrend channel, then we might see a pullback to the support of 139.4. Long scenario - if the price after the volatility declines, returns to the local uptrend channel, the target in such a situation will be the resistance of 147.67.

Regards R. Linda!