USDJPY has respected a key horizontal support zone around 142 leading to a bullish breakout from the falling wedge pattern typically a reversal signal. The price action suggests strong buyer interest at this level, reinforced by the formation of a higher low and bullish momentum. From a fundamental the yen remains pressured due to the Bank of Japan ultra-loose monetary policy stance, while the US dollar finds strength from persistent inflation concerns and expectations that the Fed may delay rate cuts. If momentum sustains above the wedge breakout, USDJPY is likely to retest the 148.00 resistance zone in the short term.
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