USD/JPY recovers early losses as investors look beyond US SC’s ruling

💡 DMK Insight

The USD/JPY’s bounce back to around 154.85 signals potential volatility ahead. This recovery from earlier losses could indicate a short-term bullish sentiment, especially if it holds above 154.80. Traders should keep an eye on the 155.00 resistance level; a break above could trigger further upward momentum. Conversely, if the pair fails to maintain this level, it might lead to a retest of recent lows, creating a classic swing trading opportunity. Additionally, the broader market context, including U.S. economic data releases and Japanese monetary policy shifts, could amplify price movements. Watch for any news that might impact risk sentiment, as this could influence both the USD and JPY significantly, especially with the current geopolitical climate. In the forex market, the USD/JPY often reacts to shifts in U.S. Treasury yields, so monitoring those could provide insights into potential price action. Keep an eye on the daily chart for any emerging patterns that might signal a trend reversal or continuation.