USD/JPY’s strength remains indefatigable. The pair remains bullish unless it sustains declines under the 50-day moving average (DMA) at 129.72, Benjamin Wong, Strategist at DBS reports.

USD/JPY remains in an ebullient mood

“USD/JPY remains in an ebullient mood unless it breaks under the 50-DMA 129.72.”

“If the pair overcomes the next resistance cluster at 136.84-137.20, a Fibonacci extended move to 139.23 looks plausible. Before that, keep a strong tussle as we near 138.25.”

“The Federal Reserve emphasises price stability and is singularly focused on taking out inflationary pressure while the Bank of Japan takes a laggard approach to shifting its Yield Curve Control policy. This Fed-BoJ policy divergence remains supportive of USD/JPY.”