Market analysis: USD/JPY bulls regain control ahead of Federal Reserve meeting notes

On Wednesday (July 9), the price of the USD/JPY timeshare chart fluctuated more frequently. The price showed a significant upward and downward trend during the day, reaching a high of 147.178 and a low of around 146.501, indicating that the game between the long and short sides of the market is relatively intense.

After the USD/JPY rallied from the support level of 142.60, it continued its bullish trend and decisively broke through several key technical resistance levels, including the short-term simple moving averages (SMAs), the 23.6% Fibonacci retracement (144.35) in the downside band of 158.86 - 139.85, and the long-term uptrend line.

The dollar was also supported by market expectations for today's Federal Reserve meeting notes, which are expected to take a cautious but possibly hawkish tone. Market participants will closely monitor the Fed's stance on persistent inflation and the expected timetable for rate cuts later in 2025.

USD/JPY daily chart

If bullish momentum persists, the pair could target the next resistance zone 148.00 - 148.65, followed by the key 149.40 level, which coincides with the 50.0% Fibonacci retracement and the 200-day simple moving average. If this area can be broken continuously, the overall outlook could turn strongly bullish.

On the contrary, in the event of a pullback, the pair could fall back to the short-term uptrend line and near the support level of 144.35. If it falls below this level and further downwards, it could reach the range of 142.00 - 142.60, which could reignite bearish pressure.

Overall, the dollar/yen remains bullish in the short term, driven by improved momentum and favorable positions ahead of the Federal Reserve meeting notes.

At 20:11 Beijing time, the dollar/yen was trading at 146.716/727, an increase of 0.13%.