FX.co ★ Alienist | USD/JPY

•••USD/JPY: A Narrow Range Amid Macroeconomic Forces November 21,2024••• The USD/JPY currency pair is trading within a narrow range today, with buy orders at 154.97 and sell orders at 154.95. This small fluctuation reflects ongoing market indecision, primarily influenced by the differing monetary policies of the United States and Japan. While the US Federal Reserve remains hawkish, and the Bank of Japan continues its dovish stance, the US Dollar holds strength. However, key economic data and shifts in market sentiment could impact price movements. ••Fundamental Overview: Divergent Monetary Policies The US Federal Reserve's decision to maintain higher interest rates has provided support to the US Dollar, attracting investors seeking stronger returns. On the other hand, the Bank of Japan’s continued ultra-loose monetary policy has weakened the Japanese Yen. This policy divergence continues to favor the USD/JPY pair in the long run, though any potential changes in either central bank’s approach could create volatility in the market.

••Technical Analysis: A Tight Range with Key Levels At present, USD/JPY is consolidating, with resistance around 155.10 and support near 154.80. The market is awaiting a breakout from this narrow range. If the pair moves above 155.10, a rise toward 155.50 could follow. Alternatively, a drop below 154.80 may suggest a pullback toward 154.50. The Relative Strength Index (RSI) is neutral at 60, indicating a balanced market with no immediate signs of overbought or oversold conditions. ••Volume and Sentiment: Risk Factors Market sentiment today remains cautious, with any unexpected news or geopolitical developments potentially triggering significant price action. Trading volume is currently low, suggesting that traders are awaiting key updates, particularly from the US or Japan, which could shift the direction of the pair.