USD/JPY Remains Strong as JPY Struggles for Upside

10月15日

The USD/JPY pair continued its upward trend on Tuesday, maintaining strength despite limited upside potential for the Japanese Yen (JPY). The JPY's inability to gain ground is largely attributed to ongoing uncertainty surrounding the Bank of Japan’s (BoJ) rate-hike plans. Coupled with a generally positive risk tone in the markets, this has kept the JPY, traditionally seen as a safe-haven currency, from making any meaningful gains.

US Data and Market Outlook
Tuesday’s economic calendar for the US is relatively quiet, with no major data releases expected. However, the spotlight will turn to Thursday’s key economic reports, which include the USD Core Retail Sales (m/m), Retail Sales (m/m), and Unemployment Claims. These reports are expected to inject more volatility into the market and could influence the trajectory of the US Dollar and other major currency pairs, including USD/JPY.

Given the strength of the USD near its two-month peak, the upcoming data could further support the dollar, limiting any potential upside for the lower-yielding JPY. The US Dollar's resilience continues to exert pressure on the JPY, keeping the pair on a bullish path.

Technical Outlook: USD/JPY Targeting 152.000
From a technical perspective, the USD/JPY pair appears poised to extend its rally, with a potential target around the 152.000 level. This area could be reached following the release of the key US economic reports on Thursday, which may provide the necessary momentum for further gains.

The technical outlook is supported by the broader strength of the USD and the lack of strong upside drivers for the JPY. The chart of JPY futures also reflects the challenging environment for the Yen, signaling continued weakness.

Chart Overview: JPY Futures Chart


As shown in the chart, the JPY remains under pressure in the futures market, further confirming our outlook for continued USD/JPY strength.

Strategy: Patience is Key
After successfully closing our previous USD/JPY trade in profit, we are now waiting for a more favorable area to enter a new position. With key economic data on the horizon, patience remains essential as we await clearer signals from the market.

In conclusion, the USD/JPY pair is likely to maintain its bullish trend in the near term, with a potential target of 152.000. The combination of US Dollar strength and uncertainty surrounding the BoJ’s rate policy should keep the Yen on the defensive, at least until there are clearer indications of future central bank actions. For now, we remain on the sidelines, waiting for the next opportunity to re-enter the market.

PREVIOUS CLOSED POSITION:

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