Today’s focus is on the Bank of Japan’s decision to maintain its current policy stance, which has led to a depreciation of the Japanese Yen. Consequently, the USD/JPY pair is on an upward trajectory, seeking higher resistance levels. Although this trend may extend further, there is an anticipation of a potential downturn in 2024.
Ueda’s hint at policy normalization in March 2024, along with the possibility of unforeseen market events, suggests a future shift in policy that could result in increased volatility and potentially strengthen the Yen. The latest Elliott wave analysis indicates a notable ongoing recovery, with the pair approaching the 144.76 mark. Surpassing it would validate the hypothesis that the recent decline was a three-wave move, indicative of a complex correction. Key resistance for a flat correction is identified in the 146.6 to 148 range, providing critical points to monitor for future market movement.
