USD/JPY Bulls Extend Run on Fed-BoJ Policy Divergence
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USD/JPY's technical structure remains constructive, with the pair holding its broader uptrend intact following this week's Fed decision. Momentum traders continue to treat pullbacks as buying opportunities, betting the policy divergence narrative has further room to run.
The key driver isn't just the hike itself but the trajectory it implies. As long as the Fed signals a restrictive stance relative to the BoJ's accommodative posture, dip-buyers are likely to keep defending recent support zones, with upside continuation the path of least resistance barring a surprise shift from Japanese policymakers.