USDJPY in a Downtrend, Market on Alert for BOJ Deputy Governor’s Speech【February 28, 2025】
Fundamental Analysis
Tokyo CPI Falls Short of Expectations, Government Subsidy Restart May Be a Factor
BOJ Deputy Governor’s Speech Scheduled, Market Braces for Potential Stock Declines
US Stocks Plunge, Recession Fears Intensify
USDJPY Technical Analysis
USDJPY is trading around 149.50 JPY, with the 10-day moving average acting as resistance. The recent low stands at 148.56 JPY, confirming the continuation of the downtrend. Although Tokyo CPI came in weaker than expected, the market remains cautious ahead of the BOJ Deputy Governor’s speech, keeping USDJPY’s upside limited.
US equities have been plunging for consecutive days, and the Nikkei 225 has broken out of its range, entering a downtrend. Investors remain anxious about uncertainties in US tariff policies, leading to capital outflows and heightened caution in the markets.
Day trading strategy (1 hour)
Looking at the USDJPY 1-hour chart, the pair briefly touched the 150 JPY level but failed to sustain gains, repeatedly pulling back. RSI is at 48, and traders should watch for a potential break below the 90-period moving average.
As today marks the end of the month, technical analysis may lose effectiveness. The recommended strategy is selling on rallies, with the following trade setup:
Sell Limit Order Near 150 JPY
Take Profit in the 148 JPY Range
Stop Loss at 150.20 JPY
Support/Resistance lines
Key support and resistance lines to consider:
- 150.15 JPY – Recent High
Market Sentiment
USDJPY – Sell: 29% / Buy: 71%
Today’s important economic indicators
Economic Indicators and EventsJapan TimeTokyo Core CPI8:30Japan Retail Sales8:50Germany CPI22:00US PCE Price Index22:30
*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.
Risk Disclaimer
This analysis is for educational purposes only and does not constitute investment advice. Trading forex and CFDs involves significant risk and may not be suitable for all investors. Past performance is not indicative of future results.
This analysis is for educational purposes only and does not constitute investment advice. Trading forex and CFDs involves significant risk and may not be suitable for all investors. Past performance is not indicative of future results.
