USDJPY – As the Yen Weakens, the Dollar Returns to the Spotlight

Today’s Asian market is revolving around one central theme: the comeback of the U.S. dollar’s strength. While most Asian currencies are moving sideways or slightly lower as hopes for a Fed rate cut in December fade, the Japanese Yen stands as a rare exception—showing mild gains after the Bank of Japan’s September meeting minutes revealed that policymakers are considering a rate hike.

However, overall, the Yen’s recovery remains fragile. On the 4-hour chart, USDJPY is forming an ascending wedge pattern, a clear sign that the bulls are still in control. The 153.300 zone now acts as short-term support, where price has repeatedly bounced during recent pullbacks.

If price continues to hold above this area and breaks through 154.800, the bullish momentum could drive USDJPY toward 155.500 – 156.000, signaling the continuation of its long-term uptrend.

The market now stands at a crossroads — the Yen is struggling to hold its ground, but the resurgence of the Dollar might soon overpower it. Traders, this could be the opening act for a new bullish wave in USDJPY.