USD/JPY Approaches Critical Technical Confluence Amid US-Japan Policy Shift
The Japanese Yen has staged an impressive recovery after plummeting nearly 4% in September. The shift in momentum has improved the technical backdrop, but the rally is approaching a critical inflection zone where buyers must prove they can sustain the advance.
The USD/JPY pair has been trading on a downtrend since July, with a key support level at 151.95-152.69. However, a two-week rally is now nearing a major technical confluence that could determine whether the trend remains intact.
Next week's economic data releases will be crucial in shaping expectations for the Fed and BOJ policy outlook. Core PCE on Wednesday, Japanese CPI on Thursday, and Non-Farm Payrolls on Friday will provide valuable insights into the evolving U.S., Japan policy differential.