USD/JPY Reversal might show up soon
As we could see, the price respected the latest USD/JPY analysis rejecting from POC2 zone. However, with most eyes on USD data this week including, New Home Sales, Crude Oil data, Advance GDP data, we may see some additional USD volatility. BoJ will be watching their CPI data with close eyes; but I expect the bullish trend in Equities to continue with risk-on causing weakness in JPY and the general bullishness in USD to continue. We might see an uptrend until October 31. Remember Risk-on is JPY weakness into USD strength. Risk-On means investments are going long into Equities and Real Estate, in other words, traders long risky assets. When its Risk-On, JPY usually weakens. But what we have right now, is also USD bullishness.
Technically POC zone 103.70-80 (61.8, EMA89, trend line) could reject the price towards 104.10 and 104.50. We can also see a momentum trend line broken to the upside. Additionally 1h momentum or 4h close above 104.20 would further spur bullish momentum towards 104.50 and 105.00 eventually.
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