USD/JPY Consolidates Below 50-Day EMA as Hawkish Sentiment Persists

The USD/JPY currency pair continues to consolidate within a symmetrical triangle, neither buyers nor sellers in control. The pair remains below the 50-day Exponential Moving Average (EMA) but holds above the nine-day EMA, indicating short-term trend support.

According to analysts at Rabobank, Yen positioning has pares back as JPY net longs have decreased sharply from 120 thousand positions to around 72 thousand. This reduction in bullish exposure underscores how quickly investor sentiment has cooled.

The FXS Fed Sentiment Index slipped by 0.63 points to 146.89 after Fed's Cook highlighted continued inflation pressure from artificial intelligence and Middle East conflict, signaling a policy stance supportive of the Dollar.