The USDJPY pair dipped near 146.50 as the US Dollar weakened, with markets anticipating Fed rate cuts starting in September. Japan’s robust Q2 GDP growth has fueled expectations of more rate hikes by the BoJ. The pair remains within Monday’s range as investors await Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium. The Yen’s performance is driven by factors like BoJ policy, yield differentials, and broader market sentiment. BoJ decisions play a crucial role due to its mandate for currency control.
USDCAD – H4 Timeframe
USDCAD seems to be nearing the end of the bearish run, as we can see price currently stalling around the trendline support. Another notable factor at this area of interest is the drop-base-rally demand; as well as the SBR (Sweep-Break-Retest) price action pattern we have so discussed many times already. The 88% of the Fibonacci retracement lends the final piece that bring the bullish sentiment to life. As for my entry, though, the lower timeframe price action will be the judge.
Analyst’s Expectations:
- Direction: Bullish
- Target: 1.38850
- Invalidation: 1.35810
USDJPY – D1 Timeframe
The month-long bearish momentum on USDJPY might just be nearing its end. This sentiment is based off of the SBR price action pattern, the drop-base-rally demand zone, and the bullish array of the moving averages. Due to the lack of any more convincing confluence, I will be patiently waiting for a proper change-of-character of the lower timeframe price action before pulling the trigger for a bullish entry.
Analyst’s Expectations:
- Direction: Bullish
- Target: 153.239
- Invalidation: 141.600
