The Japanese Yen (JPY) strengthened against the US dollar (USD), according to reports that the Bank of Japan (BoJ) is likely to raise interest rates next week as long as there are no significant disruptions with Trump’s presidency. Markets are pricing in a 0.2% rate hike for the January 24th meeting, which has boosted confidence in the Yen. Meanwhile, steady US bond yields have also supported Yen’s performance.
The British Pound (GBP) weakened after disappointing UK growth data, lowering UK bond yields. In the US, upcoming data releases, including retail sales and housing market updates, are expected to show a solid economy as consumers try to make purchases before potential tariffs are introduced. Later, China will release important economic figures like GDP and retail sales, which could influence global markets.
AUDJPY – D1 Timeframe
At the recent high on the daily timeframe chart of AUDJPY, we see an FVG (Fair Value Gap) with a supply zone behind it. This often attracts price movement, as the FVG usually seeks to be mitigated. On this ground, we can scan the lower timeframe for factors that cause bullish momentum.
AUDJPY – H4 Timeframe
Breaking down the price action on the 4-hour timeframe chart of AUDJPY, we see an SBR pattern emerging from the bearish sweep below the previous low, followed immediately by a bullish break of structure. The rectangular shape highlights the initial entry zone, whilst a secondary entry may present itself at the pivot region marked by the red horizontal lines.
Analyst’s Expectations:
- Direction: Bullish
- Target: 100.353
- Invalidation: 93.405
 with a supply zone behind it. This often attracts price movement, as the FVG usually seeks to be mitigated. On this ground, we can scan the lower timeframe for factors that cause bullish momentum.){kind=link}