\n<\/p>\n
USD:<\/u><\/strong><\/p>\n The US dollar regained some ground at the start of the week as both Trump This kind of headline noise has been going on for several weeks and kept Looking ahead, the Fed is slowly abandoning the easing bias amid resilient After that though, the focus will quickly turn back to the Fed and the There\u2019s also another scenario where the Strait remains closed for longer JPY:<\/strong><\/u><\/p>\n On the JPY side, nothing The BoJ recently left In fact, he noted that they He added that they expect USDJPY – daily<\/p>\n<\/figcaption><\/figure>\n On the daily chart, we can USDJPY – 4 hour<\/p>\n<\/figcaption><\/figure>\n On the 4 hour chart, there\u2019s USDJPY – 1 hour<\/p>\n<\/figcaption><\/figure>\n On the 1 hour chart, we
\nand Iran rejected the respective war-ending proposals calling them unacceptable
\nand leaving the two sides miles apart on any potential agreement. Moreover, there
\nare some reports pointing to a possible restart of the war, which keeps the
\ngeopolitical risk high.<\/p>\n
\nthe price action in rangebound mode as traders continued to wait for new
\ndevelopments before picking a direction. <\/p>\n
\nUS data and elevated energy prices. The reopening of the Strait could weigh on
\nthe greenback in the short-term as oil prices will likely crater and rate cut
\nbets will increase. <\/p>\n
\neconomic data. With the end of the war, the increase in economic activity could
\nkeep inflation higher for longer and eventually even require rate hikes to
\nbring it sustainably back to the 2% target that the Fed has been missing since
\n2021.<\/p>\n
\nand oil prices stay elevated, with the risk that the Fed turns hawkish anyway and
\ngives the greenback a strong boost given the bearish positioning on the dollar.\n<\/p>\n
\nhas changed fundamentally. Japanese officials have been intervening in the FX market,
\nbut yen sellers have been quick in fading the moves due to the persistently
\nnegative macro backdrop. <\/p>\n
\ninterest rates unchanged at 0.75% as widely expected but the highlight of the
\ndecision weren\u2019t the three dissenters voting for a rate hike, but Governor Ueda
\nadopting a less hawkish stance. <\/p>\n
\nwant to take a little bit more time in gauging how the Middle East situation
\nwould affect Japan\u2019s economy and acknowledged that underlying inflation is
\ncurrently a bit below the 2% target.<\/p>\n
\nunderlying inflation to be around 2% from second half of 2026 but admitted that
\nhe doesn\u2019t know how many months it would take to gauge timing of their next
\nrate hike. This is going to keep weighing on the Japanese yen despite the interventions.
\nAll in all, the bias for the Japanese Yen remains bearish. <\/p>\nUSDJPY TECHNICAL
\nANALYSIS \u2013 DAILY TIMEFRAME<\/h2>\n
\nsee that USDJPY<\/a> is now trading around the key
\n158.00 resistance zone. This is where we can expect the sellers to step in with
\na defined risk above the resistance to position for a drop back into the major
\ntrendline. The buyers, on the other hand, will want to see the price breaking higher
\nto pile in for a rally into the 162.00 handle next.<\/p>\nUSDJPY TECHNICAL
\nANALYSIS \u2013 4 HOUR TIMEFRAME<\/h2>\n
\nnot much we can add as the main levels remain the resistance zone around the
\n158.00 level and the major upward trendline. We might just range here until we
\nget a breakout on either side. <\/p>\nUSDJPY TECHNICAL
\nANALYSIS \u2013 1 HOUR TIMEFRAME<\/h2>\n
\nhave a minor support zone around the 156.50 level. If the price falls into it,
\nwe can expect the buyers to step in with a defined risk below the support to
\nkeep pushing into new highs. The sellers, on the other hand, will look for a
\nbreak to increase the bearish bets into the major trendline. The red lines
\ndefine the average daily range<\/a> for today. <\/p>\nUPCOMING CATALYSTS<\/h2>\n