USDJPY Shows Signs of Reversal, Bullish Engulfing Pattern Appears Near Lows【April 24, 2025】
Fundamental Analysis
U.S. Treasury Secretary Bessent clarified that there is no currency target, easing JPY appreciation sentiment.
The Trump administration has softened its previously aggressive stance toward both China and the Federal Reserve.
USDJPY Technical Analysis
The USDJPY rebounded after hitting a low of 139.88JPY, forming a bullish engulfing candlestick. This strong rebound coincides with easing risk-off sentiment.
Following the much-anticipated meeting between Treasury officials, Secretary Bessent stated there would be no currency target, which helped ease JPY-buying pressure. Additionally, reports indicated that there are no intentions to dismiss the Fed Chair, a more conciliatory tone toward China, and a possible peace agreement with Russia—all contributing to a more risk-on market mood, with U.S. equities rising.
The next key target appears to be 144JPY, which corresponds to the 23.6% Fibonacci retracement on the daily chart.
Day trading strategy (1 hour)
The 1-hour USDJPY chart shows that the 52-period moving average is trending upward. The pair has climbed to around 143.57JPY, suggesting short-term reversal signs.
As a day trading approach, a buy-the-dip strategy may be appropriate. One might consider testing a long entry around 142.20JPY, while being cautious of sudden price moves. If the price falls below the 52-period MA, it should be taken as a stop-loss signal.
Support/Resistance lines
Key support and resistance lines to consider:
- 144JPY – Daily Fibonacci level
Market Sentiment
USDJPY – Sell: 45% / Buy: 55%
Today’s important economic indicators
Economic Indicators and EventsJapan TimeU.S. Initial Jobless Claims21:30U.S. Existing Home Sales23:00
*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.
