With the accumulation phase completed and a full wyckoff cycle concluding a spring with an upward movement, USDJPY is expected to sustain its bullish momentum. Examining the technical indicators on the weekly chart, we observe that RSI is converging with price action and trending upward, currently at 59.32. The MACD is holding above its midline and could potentially cross into the green on the upcoming upward movement. There's notable buyside liquidity at 149.750, and it's anticipated that market makers will surpass it this week. However, post-clearance above 149.750, it might become volatile, especially around the psychological area of 150, fueled by concerns about BOJ intervention and rate changes—a speculation largely driven by retail traders. Despite this, the dollar is experiencing robust bullish momentum, given the 5%+/- interest rates, the negative Japan rate make USDJPY an attractive pair to hold with positive swap fees acting like daily dividends, particularly for those with substantial positions.
Zooming into the daily chart, it's evident that price accumulation occurred within a downward-sloping structure, forming a distinctive bull flag. RSI has recently risen, converging with the price and holding a current reading of 62.43. A minor pullback may occur after clearing the buyside liquidity at 148.800 (marked with an orange dotted line). For those who missed the entry opportunity in December 2023 and failed to enter before the impulsive move on February 2, 2024, there's potential to catch the next smaller pullback after the aforementioned liquidity is cleared.
Zooming into the daily chart, it's evident that price accumulation occurred within a downward-sloping structure, forming a distinctive bull flag. RSI has recently risen, converging with the price and holding a current reading of 62.43. A minor pullback may occur after clearing the buyside liquidity at 148.800 (marked with an orange dotted line). For those who missed the entry opportunity in December 2023 and failed to enter before the impulsive move on February 2, 2024, there's potential to catch the next smaller pullback after the aforementioned liquidity is cleared.