The persistent dollar strength is pushing up USD/JPY
The yen depreciation is directly impacting households, but the dollar strength still seems likely to continue. After a temporary pullback, buying energy has accumulated. If the price falls below 129, it could break support and test the lower levels, but if it returns and surpasses 129.4, it would move into a vacuum zone and aim for 130 yen. The key here is that after the dollar’s pullback, the market has become consolidative (range-bound). It is shouldering volume in a range and is in the preparation stage to gain momentum for the next rise..
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