The USD/JPY pair is on the move once again, as it gains follow-through traction on the first day of the new week. The pair is currently trading around the 134.30 region, just a few pips below the daily top. This is a positive sign for traders who are bullish on the USD/JPY pair and are looking for opportunities to buy.
Maintaining Bid Tone in Early European Session
During the early part of the European session, the USD/JPY pair maintained its bid tone. This indicates that there is strong demand for the pair and that buyers are willing to pay higher prices to get their hands on the currency. This is usually a positive sign for traders who are looking to buy, as it suggests that the momentum is in their favor.
Bouncing from Mid-133.00s
On Friday, the USD/JPY pair bounced from the vicinity of mid-133.00s, which is another positive sign for traders who are bullish on the pair. This bounce suggests that there is support for the pair at this level, and that buyers are willing to step in to prevent further downside. This support level can be used by traders as a stop-loss, as it is likely that the pair will not drop below this level in the short-term.
Looking Ahead
As we look ahead, there are a number of factors that could impact the movements of the USD/JPY pair. One of the most important factors is the strength of the US dollar. If the dollar continues to strengthen, this could push the USD/JPY pair higher, as traders look to buy the currency.
Another factor that could impact the pair is the state of the global economy. If there are signs of weakness in the global economy, this could cause traders to turn to safe-haven currencies like the Japanese yen, which could push the USD/JPY pair lower.
Overall, the USD/JPY pair is showing signs of strength, with the pair maintaining its bid tone and bouncing from the mid-133.00s. Traders who are bullish on the pair may want to look for opportunities to buy, while those who are bearish may want to wait for a drop below the mid-133.00s before considering a short position.
In conclusion, the USD/JPY pair is on the move, with the pair maintaining its bid tone and trading near the daily top. Traders who are looking to buy may want to consider their options, while those who are bearish may want to wait for a drop below the mid-133.00s before taking a position. With a number of factors set to impact the movements of the pair, it will be interesting to see how it performs in the coming weeks and months.
