Going Long on USD/JPY As It Heads for 140 After Ueda’s Comments

Today, USD/JPY is experiencing buying pressure once again after several sessions of consolidating, following the first notable correction lower of around 750 pips, since the rally began on March 23, 2023. The crash that we saw last week has subdued discussions about potential market intervention by the Bank of Japan.

Currently, the price is approaching a critical area where market activity is expected to be intense. Bullish traders are actively trying to regain control of the market, and they aim to leverage the risk/reward ratio after the retreat. USD/JPY buyers are prepared for another upward movement in the market. However, for this bullish leg to materialize, they will need to overcome the significant zone around 140. Successfully clearing this resistance zone will be crucial for the bulls to continue their upward momentum.

Comments from Bank of Japan Governor Ueda

Still some distance to sustainably achieve 2% inflation target
BOJ has been patiently maintaining easy policy
Unless our assumption on need to sustainably achieve 2% target changes, our narrative on monetary policy won’t change

This doesn’t sound like a guy who wants to change YCC at the end of the month. The yen is falling on the comments. If Ueda does not deliver as expected next week, it is likely to result in additional selling pressure on the currency, considering the positioning flows observed over the past two weeks.

USD/JPY Live Chart

USD/JPY

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.