Forex
USD/JPY Soars as Hawkish Tone from Musalem Fuels Bullish Bias
The USD/JPY currency pair is experiencing a bullish trend, rising to near 158.00 and approaching its 50-day EMA.
According to the Relative Strength Index (RSI), the momentum is modestly positive, indicating eased selling pressure rather than a reversal.
The technical analysis suggests that the USD/JPY pair is moving upwards within an ascending channel pattern, supporting a strengthening bullish bias.
Fed's Musalem delivered a distinctly hawkish tone in a recent speech, emphasizing the need for earlier and incremental rate hikes to combat elevated inflation risks.
The FXS Fed Sentiment Index rose by 0.42 points to 149.96, firmly in hawkish territory, consistent with Musalem's views on further rate hikes.