Post #15823

USD/JPY, Double Bottom or Not? USD/JPY is bouncing early Monday after last week’s ~3% drop. With U.S. markets closed, liquidity is thin. The pair is now sitting near a potential double bottom around 152.5 — a level that’s becoming technically important. A clean break below would open the door to a deeper downside move, while holding keeps near-term stabilization in play. The yen is giving back some strength after Japan’s GDP showed barely positive growth (0.2% annualized), reminding markets that the post-election backdrop still comes with economic fragility. With the political dust settling, the yen has shifted back to trading more on data than headlines. The BoJ remains cautious — March hike odds sit near 20% — and if policymakers use recent yen strength to stay gradual, the risk of renewed JPY weakness and long-end bond volatility remains. Later this week brings Japan CPI and U.S. PCE, key inflation reads that will shape the rate outlook for both economies. - Alan