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Until the level of 101 is not breached, the outlook for USD/JPY is bullish. Moreover, just 100 pips lower there is a strong psychological level, which will most likely limit pair's depreciation in the nearest future. On a 4H chart the pair is still trading in boundaries of the descending triangle pattern even despite a throwback. A breakout is approaching, as both trend lines will converge on March 28.
With only 10 days left before the apex, Dukascopy Community members are suggesting the pair will appreciate during this week. The price will most likely hit 102.04 by this Friday, as 57.7% of members are having bullish outlook. Despite bullish outlook, this price is slightly below last week's average price of 102.58. While the outlook is bullish, with 74% of opened positions being long, some traders expect even a stronger upside movement. "MACD indicates that momentum is improving, but it remains in bearish territory. We expect the histogram as well as moving average to approach the centerline during the expected move higher. RSI is trading in extreme oversold territory and a breakout should initiate the rally," said ImranMughal99. He suggests the pair's lowest level will be at 103.5, while the most optimistic scenario stands at 104. In contrast, amid risk-on sentiment, investors are rushing to buy the Yen, pushing the pair lower. "Rumors of a war made the market look for the safe haven currencies, so the Yen is leading the market opposite the second currency safe haven seeking new considerable support below," said BonnerFX.
While the key event for the U.S. Dollar is the FOMC meeting, Kuroda's speech, Japanese trade balance as well as foreign investment in Japan stocks will have a significant impact on the Japanese currency. According to Dukascopy members, all these events will push USD/JPY higher.
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