Forex
USD/JPY Sees 4% Rally Amid Rising Momentum and Key Economic Data
The Japanese Yen has staged an impressive recovery after its sharp decline in September, rebounding nearly 4% from its monthly low.
Momentum has shifted firmly in favor of the bulls, with weekly RSI attempting to reclaim neutral territory for the first time since early August.
The rally is now approaching a major technical confluence that could determine whether the post-intervention decline remains intact.
Key economic data releases next week will shape expectations for the Fed's reaction function and provide an important test of the Bank of Japan's tightening bias before attention turns to Non-Farm Payrolls on Friday.