With 10 year US yields experiencing only a three-wave drop from a new high last week down to 4.5%, we should anticipate more gains here. This is likely to be positive for the Dollar, especially against the Jpy. Looking at the USDJPY hourly chart, we see a bullish impulse entering its late stages this week as we see price in fifht wave up. There’s significant potential resistance at 155.50.
Also, don’t overlook the Bank of Japan’s interest rate decision this Friday. Given the BOJ’s concerns about the current weak status of the Japanese Yen, they may seek solutions to bolster the yen. Therefore, be mindful of potential limited upside and reversals in yen pairs. From a market perspective, we certainly expect that sooner or later, there will be some form of new retracement on USDJPY.
