USD/JPY Surges Past 154.70 Despite Diverging Central Bank Policies
The Fed is widely anticipated to maintain its current interest rate levels, while the BoJ is poised to announce a significant reduction in its bond purchasing program and a potential 10 basis point rate hike.
Market Focus:
The market's focus is on the upcoming Fed meeting, where Chair Powell's comments will be scrutinized for clues regarding the potential timing of a rate cut. Additionally, today's release of the US JOLTS job openings and the Conference Board's Consumer Sentiment Index is expected to provide further evidence of a softening US economy in Q2.
Technical Analysis:
The USD/JPY pair is gaining momentum after breaking above Friday's high of 154.70, with bulls targeting the resistance zone between the 4H 50 SMA at 155.35 and the 38.6% Fibonacci retracement level at 155.75. Support levels are identified at 153.00 and 151.90.