USDJPY Continues Downward Trend, Impacted by US-South Korea Currency Talks【May 16, 2025】
Fundamental Analysis
Reports of U.S.–South Korea currency negotiations have triggered a sharp appreciation in the Japanese Yen.
Full removal of sanctions on Syria may act as a bearish factor for crude oil.
USDJPY Technical Analysis
Analyzing the daily chart of USDJPY, the pair initially rose above the 52-day moving average and approached the 90-day moving average. However, following reports of US-South Korea currency discussions, USDJPY has fallen for three consecutive days.
The Ichimoku Cloud is acting as a resistance zone, making the market technically favorable for selling on rallies. Currently, the price has dropped below both the 52-day moving average and the conversion line (Tenkan-sen). The RSI hovers around 50, indicating a balance between buying and selling pressure.
Market sentiment shows 63% of traders holding long positions. The 145.00 Yen level is a key support zone; however, a temporary decline toward the base line (Kijun-sen) around the lower 144 Yen range remains possible.
USDJPY／Daily
Intraday Trading Strategy (1-Hour Chart)
On the 1-hour chart, USDJPY has declined to the low 145.00 Yen range, with the 200-period moving average capping the rebound. A death cross has formed between the 52-period and 200-period moving averages. The pair continues to fall along the Tenkan-sen, with no sign of reversal yet.
Meanwhile, the RSI is forming higher lows, indicating a classic bullish divergence.
The suggested day trading approach is to buy the dip.
Entry: Limit order around 144.25 Yen (Daily Kijun-sen)
Take Profit: 145.50 Yen
Stop Loss: Below 144.00 Yen
USDJPY／1H
Support & Resistance Levels to Watch:
Support: 144.25 Yen (Daily Kijun-sen)
USDJPY Market Sentiment
- Sell: 37%,Buy: 63％
Key Economic Events Today
EventTime (JST)Japan GDP8：30US Housing Starts21：30US University of Michigan Consumer Sentiment Index23：00
*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.
