USDJPY | Short after the bullrun with target 140!

The recovery of the US dollar is accelerating as market sentiment fades. The Yen is on the defensive with the hope that the BoJ will keep its extremely accommodative policy unchanged. Markets are quiet today, with US markets closed for a bank holiday. The pair has recovered most of the ground lost on Friday, reaching intraday highs near 146.00. The dollar seems to have ignored the post-PPI weakness in the United States in a calm trading session, with US markets closed for Martin Luther King's birthday. With the Bank of Japan monetary policy meeting approaching, the weak Tokyo CPI index and wage data from last week have practically ruled out any monetary policy normalization in the January meeting. The highlight in the US calendar will be the release of retail sales on Wednesday. In Japan, all eyes are on the national CPI data expected on Thursday. Confirmation on M15 is expected tomorrow during London or New York to assess a possible short with a target at 140. Greetings and happy trading to all.

Commentaire:

Today, the market has breached the supply zone, transforming it into a reversal zone. Now, I will await a pullback within this zone and then assess for a bullish Break Out Signal to enter a long position.