BoJ Ueda is fine with the current policy and he highlighted that they will continue easing with yield curve control. At the same time we have higher US yeilds and higher stocks which are bearish for JPY. As result USDJPY is trading higher.
USDJPY made a sharp reversal in 2022 on a daily chart, and touched 126-130 area after BoJ policy YCC adjustment back in December. However that drop appears completed as we have seen rally in the 4h chart, but it’s just another corrective recovery that is still in progress now. Ideally, its going to be an A-B-C move up to 140-142 resistance area where we will expect a bearish turn still this year. Alternatively, this can even be W-X-Y from 127 lows, but still a corrective and temporary higher degree pause for wave B/II.
