TECHNICAL ANALYSIS
On the daily chart, we observe that the USDJPY pair has made a significant break above the 150.00 level, primarily due to the Bank of Japan's (BoJ) decision not to intervene in the market in the previous month. This news has boosted buyer confidence, pushing the pair to a cycle high around 152.00. It's important to note a substantial divergence with the MACD indicator, indicating a potential reversal. In such situations, the market is sensitive to fundamental catalysts that can alter the overall trend. On the 4-hour chart, we can see a strong, uninterrupted rally from the previous day, with no notable pullback. Sellers are likely to re-enter the market at these levels, setting a defined risk above the cycle high, given the substantial risk-to-reward ratio if the pair reverses. Buyers, on the other hand, are likely to find support near the previous swing high at around 150.70, which also coincides with the 38.2% Fibonacci retracement level. On the 1-hour chart, a closer look reveals that the moving averages are beginning to turn, and sellers are becoming more active. A break below the support zone could result in increased bearish sentiment. Keep a close watch on US labor market data this week, as disappointing figures could potentially lead to a complete reversal of the current trend.
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