USD/JPY holds positive ground above 154.00 on Powell's cautious remarks

💡 DMK Insight

The USD/JPY’s rise to 154.05 signals a shift in sentiment following the BoJ’s lackluster response to rate hike expectations. Traders were clearly looking for a more aggressive approach from the BoJ, but the central bank’s decision to maintain its current stance has left the Yen vulnerable. This could lead to further USD strength, especially if the market perceives the Fed’s policies as more favorable in comparison. Watch for resistance around 155.00, as a break above could trigger more aggressive buying. Conversely, if USD/JPY retraces, support is likely around 153.50, which could provide a buying opportunity for those looking to capitalize on Yen weakness. Here’s the thing: while the mainstream narrative focuses on the BoJ’s decision, it’s crucial to keep an eye on broader economic indicators, like US employment data, which could further influence USD strength. If the Fed signals continued tightening, expect the USD/JPY to push higher, potentially impacting correlated assets like Japanese equities, which often react to currency fluctuations.