The USD/JPY experienced a significant decline, subsequently bouncing back from the 155 level, which remains a robust support point. The Bank of Japan’s decision to refrain from tightening, coupled with the Federal Reserve’s indications of uncertainty, positions the pair as a favorable buy-on-dips opportunity within a context of volatile consolidation. The US dollar has experienced a notable decline against the Japanese yen during trading on Thursday; however, the 155 yen level has acted as a support, leading to a favorable rebound, and it appears that there is an effort to consolidate at this point.
Numerous inquiries are circulating regarding the future actions of the Federal Reserve. Previously, we indicated the likelihood of several interest rate cuts; however, the term “data-dependent” continues to be frequently referenced. Given the current circumstances and the Bank of Japan’s apparent reluctance to tighten monetary policy if possible, it is reasonable to anticipate that we will ultimately see an upward trend.
Even in the event of a breakdown from this point, the 50-day EMA at the 153.88 level is likely to provide support, with the 153 yen level following closely behind. Considering all factors, it’s clear that I am inclined to purchase this pair, and I find these pullbacks appealing for some value opportunities.
I seek short-term pullbacks that indicate potential bounces, similar to what we observed on Thursday, as a possible entry point. I enhance my position, I gather swaps by day’s end, and my account expands accordingly. Should we fall below the 152.80 yen threshold, there is a potential for the market to decline towards the 200-day EMA.