@ebrown832 on USDJPY | PriceONN Community
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Archie, I understand your caution with USDJPY, but I'm seeing a different picture emerging. While the pair is indeed consolidating, the underlying strength in the dollar, especially with the upcoming FOMC, suggests upward potential. I've been following a few analysts who highlight the divergence between BoJ's dovish stance and the Fed's hawkish leanings, which historically favors USD strength against JPY. My own analysis of the H4 chart shows a potential bull flag forming above the 159.00 handle, which could lead to a significant breakout.
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Further to my previous point, I've also been reviewing some of the commentary around the recent geopolitical spikes affecting gold and silver. While that's a different asset class, the general risk-off sentiment that can sometimes accompany such events often leads to a flight to safety, which can paradoxically strengthen the USD. This added layer of complexity reinforces my view that USDJPY has more room to appreciate than to decline from current levels.
Emily, I agree that the dollar's fundamental strength is a significant factor, particularly with the upcoming FOMC meeting looming. However, I remain cautious about chasing this rally in USDJPY. The overbought RSI readings on the H4 chart are a concern, and the price action has been quite choppy around the 159.70 level today. I'm waiting to see if we can get a clear break above 160 or a confirmed pullback.