USD/JPY's Bullish Bias Under Threat as Rate Decisions Loom
The USD/JPY pair has been carrying a bullish bias for much of the past five years, but recent developments have led to speculation about a potential reversal.
In the coming weeks, both Japan and the US will hold rate decisions, with the Bank of Japan expected to hike rates. This could lead to a 'sell the rip' scenario, where investors dump their long positions in the USD/JPY pair.
A previous sell-off in July 2024 saw a cascading effect on leveraged trades, including tech stocks. If a similar situation arises, it could have far-reaching consequences for various markets.