Two things can happen from here:
Scenario 1: Counterfeiting (Liquidity Sweep) 📉
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The Japanese government has repeatedly warned that it is ready to intervene and support the yen. If they actually act – and not just talk – the rally could be strongly rejected around these highs, and the price could pull back again.
Scenario 2: Real hack 📈
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Although Japan raised interest rates in June, US interest rates are still much higher than Japan’s. This gap is the main reason why money continues to flow into the dollar and out of the yen. If this gap remains wide, this breakout may continue.
⚖️ What tips the scales:
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The next Fed meeting is scheduled for July 28-29. If the Fed appears to be leaning toward lowering interest rates, this gap narrows—in favor of Scenario 1 (reversal). If the Fed holds, the gap remains wide – in favor of the second scenario (continuation).
How to know which one to play:
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🔴 Stay tuned for actual Japanese intervention (not just statements) → Sweep
🟢 Watch the price close for the week clearly above 162 → breakout
🎯Levels to know:
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Resistance area: 161.2 – 162.0
Support below: 155.0
Not financial advice – just breaking down the setup. Dior. 🙏
Quagga
