The USDJPY pair has pulled back after reaching its highest level since mid-August, dropping to around 148.00 before recovering slightly. The Japanese Yen gained strength due to comments from Japan’s Vice Finance Minister for International Affairs, which raised concerns about potential market intervention. Additionally, global risk sentiment shifted, with rising geopolitical tensions in the Middle East driving investors towards safer assets like the Yen. However, the US Dollar remains strong after a solid US jobs report on Friday, which lowered expectations of a large interest rate cut by the Federal Reserve. Traders are likely cautious ahead of key events this week, including the release of the Fed’s meeting minutes and important US inflation data. These factors will play a major role in guiding the next moves in the USDJPY pair. In the meantime, market participants will keep an eye on any statements from Fed officials for short-term trading opportunities.
GBPJPY – H3 Timeframe
The 3-hour timeframe of GBPJPY on the currently shows the moving averages arranged in a bullish array. The trendline support is another viable confluence to consider. Additionally, we can see the demand zone, and the break of structure, all these point in favor of a bullish sentiment.
Analyst’s Expectations:
- Direction: Bullish
- Target: 195.623
- Invalidation: 189.899
NZDJPY – H1 Timeframe
On the 1-hour timeframe of NZDJPY, we can see the recent break above the previous high. The break of structure is the initial basis of my bullish sentiment. The next confluence is the 76% of the Fibonacci retracement; since it overlaps a drop-base-rally demand zone. The trendline support lends the final clue in favor of the bullish sentiment.
Analyst’s Expectations:
- Direction: Bullish
- Target: 91.970
- Invalidation: 89.838
