The current price of JPY/USD indicates a bullish bias while eagerly awaiting the Bank of Japan’s (BOJ) interest rate decision on June 16th. On a 30-minute chart, the price is currently positioned above both the 200-day and 50-day Moving Averages, suggesting a positive sentiment in the market. Two scenarios are possible for the market. The relative strength for the market is also up, indicating a strong momentum to the upside.
In Scenario 1, if the price continues to rise, it may test the level of 141.667. A successful test of this level could further drive the price upwards, targeting the levels of 141.860 and 142.344, with a decisive top potentially forming around 142.400. These levels should be closely monitored as they hold significance in determining the market’s direction.
Scenario 2, if the price retraces from the current levels, it may find support at 140.940, followed by a major psychological and crucial level at 140.693. A test of this level could indicate a short-term bias in favor of JPY/USD bears. Further downside potential may lead the price to test levels at 140.370, 139.979, 139.346, and even potentially reaching 138.923.
It’s important to note that the market could also consolidate within the range of 139.346 to 141.667. Traders should carefully observe price reactions within this range to gain insights into potential market movements.
The Bank of Japan (BoJ) interest rate decision is a high-impact event for the JPY. The current interest rate stands at -0.10% and the consensus is for no change in the rate. The market will closely watch the BoJ’s decision as it can have significant implications for the JPY and related financial instruments. As the BOJ interest rate decision approaches, market participants should remain vigilant and adapt their strategies accordingly.
