#usdjpy

#usdjpy

USDJPY has recorded a notable correction in recent sessions as it retreated from the recent peak around 157.8 to 154.9, marking a temporary weakening of the USD while reflecting new expectations regarding Japan's monetary policy. This decline does not stem from a single factor, but rather from a combination of stronger signals from the Bank of Japan (BoJ) and profit-taking from previous USD long positions.

From my perspective, this decline is not merely a short-term move but a reflection of deeper shifts in global monetary sentiment-specifically the narrowing gap between the two countries' policies, which has already begun translating into accumulated selling pressure on the pair. Market behaviour during Thursday's session is clear: the entry of new sellers reflects a lack of confidence in the dollar's ability to maintain its momentum, especially after failing to capitalize on the modest rebound from 155.65, the lowest level in a week.

The USD/JPY pair is moving on a volatile path, reflecting the uncertainty that dominates global markets. The pair managed twice to approach the 149.00 level during Wednesday's trading, even briefly reaching its highest level in five weeks at 149.14, but it failed to break above the 200-day EMA near 148.22. This reveals a lack of momentum, as traders await the pivotal U.S. economic data scheduled for release this week.