BOJ Rate Hike Expectations Rise, USDJPY Plunges to 152 JPY【February 6, 2025】

Fundamental Analysis

• Rapid JPY Appreciation, USDJPY Falls to the 152 JPY Level
• USDJPY experienced a steep decline, falling to the 152 JPY range amid intensified yen buying pressure.

USDJPY Technical Analysis

USDJPY has fallen to the 200-day moving average and is currently trading around 152.50 JPY. While the 90-day moving average previously acted as support, increased BOJ rate hike expectations have created a stronger yen-buying environment.

The price has clearly broken below the Ichimoku Cloud, making the 200-day moving average a critical support level. The uptrend channel has been decisively broken, and if this key level is breached, a further decline toward 145 JPY could come into play.

MACD indicates a downward trend, with a trough beginning to form. Caution is advised for a potential drop toward the lower 151 JPY range.

Day trading strategy (1 hour)

Analyzing the 1-hour USDJPY chart, short-, medium-, and long-term moving averages are starting to slope downward, indicating a strengthening downtrend. However, given that the price has reached the 200-day moving average on the daily chart, caution is needed against excessive selling at this level.

While the long-term trend remains bearish, some short-term rebounds are possible today. From a counter-trend perspective, a test buy position around the lower 152 JPY range could be considered, targeting an exit at 152.50 JPY. If the price fails to rebound and drops to 151.75 JPY, it would be advisable to set a stop-loss.

Support/Resistance lines

Key support and resistance lines to consider:

• 151.15 JPY – Daily support level
• 150.80 JPY – Major support level

Market Sentiment

USDJPY Sell: 41% / Buy: 59%

Today’s important economic indicators

*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.