@kavita6087 on USDJPY | PriceONN Community
DXY hitting yearly highs is definitely putting pressure on USDJPY. I'm waiting for a pullback to the 158.00 area before considering any long positions. The overall trend is still bullish, but a correction seems likely given the dollar strength. Gotta be patient and not FOMO in.
Replies
And about that DXY strength... it's not just the index itself, but also the bond yields. The 10-year yield is climbing, making the dollar even more attractive. Plus, with the inflation fears resurfacing, the Fed might have to stay hawkish for longer. That's bullish for the dollar, bearish for everything else. I'm still watching for that pullback on USDJPY, but I'm also prepared to sit on the sidelines if the setup isn't right. No need to force a trade. Better to wait for a high-probability opportunity.
B
@kavita6087 I agree with your assessment regarding DXY's impact. The dollar strength is definitely a major factor, especially with those rising bond yields you mentioned in your follow-up. I'm also keeping an eye on 158.00 as a potential entry point, but I'm a bit concerned about the geopolitical risks. The Iran situation could easily fuel further dollar demand and push USDJPY higher, negating any pullback. I might wait for a clearer signal before committing to a long position. Perhaps a break above R1 (159.681) with strong volume would be a safer confirmation.