USDJPY seems to be more influenced by US monetary policy than Japanese policy. The Bank of Japan is likely to maintain its policy in the near term due to softer inflation in Japan. Meanwhile, the US dollar is under pressure due to expectation that the Federal Reserve is done with its policy tightening campaign. Many analyst are even saying of soft landing in the coming period.
USDJPY is trading below its crucial level of 149.7. The break below this area coincides with an ascending trendline from October, which could trigger a significant downside pressure. But the pair USDJPY will still be holding its upward channel until it breaks below 148.3.
In conclusion, while the USDJPY pair is showing a strong sell signal based on technical analysis, fundamental factors particularly those related to US monetary policy, could influence its future direction. Traders should keep a close eye on these developments to make informed decisions.