The Trust Layer for Market Analysts

The main event to watch in mid-June is not the US Federal Reserve, but the Bank of Japan. There is a significant chance that the Bank of Japan will raise interest rates in June. This potential rate hike is a key factor to monitor for the USDJPY currency pair. A rate hike by the Bank of Japan would typically lead to a strengthening of the Japanese Yen, which could put downward pressure on USDJPY. However, the current market trend for USDJPY is bullish, suggesting that even with a potential rate hike, other factors may continue to support its upward movement or that the market has not fully priced in the impact of such a hike. The analysis suggests a bullish continuation for USDJPY, with a target of 160.0, and an invalidation level below 155.0. This implies that the market expects USDJPY to continue its ascent, potentially reaching higher levels despite the anticipated monetary policy shift in Japan.