USD/JPY Price Analysis: Bears make a move into longs as CPI rolls in
- USD/JPY is under pressure from a move to test key structure.
- The bears eye a break below 134.50 for the day ahead.
USD/JPY is offered at the start of Friday ahead of a busy schedule that will include Kazuo Ueda as the new head of the Bank of Japan speaking in parliament on Friday and key US inflation data. Japan’s Consumer Price Index has also been released today but has done little to through the bears off their tracks as they move into longs that have been building over several days.
USD/JPY daily chart
USD/JPY is being capped at what could be the top of an impressive run of late that has lasted over the course of 2023 so far. On a break of 134.50, the bears will be keen on a test to 133.70 and will then eye 132.90.
USD/JPY H1 chart
From an hourly perspective, the price needs to get below the 134.50 structure to open 132.90 and 133.70 when it will be on the backside of the micro bullish dynamic trendline. A long squeeze will then be in play and risks of the bull’s capitulation on the cards also.