JPY: A volatile start – NAB

💡 DMK Insight

The JPY’s wild swings between 153 and 159 signal a brewing storm in forex markets. This volatility is likely driven by shifting monetary policies and geopolitical tensions, which can catch traders off guard. As the Bank of Japan continues its ultra-loose stance while other central banks tighten, the JPY could face further pressure. Traders should watch for key resistance around 159 and support near 153. A break below 153 could trigger a deeper sell-off, while a rally past 159 might attract bullish sentiment. It’s also worth noting that this volatility could spill over into other currencies, particularly the AUD and NZD, which often correlate with JPY movements due to their ties to Asian markets. Keep an eye on economic indicators from Japan and the U.S. that could impact these levels, especially any surprises in inflation data or employment reports. The next few weeks will be crucial for positioning ahead of potential shifts in market sentiment.