U.S. President Donald Trump visited Japan, marking the first summit diplomacy under Prime Minister Sanae Takaichi's administration. U.S.–China tensions have slightly eased, and expectations are growing for large-scale fiscal spending in Japan.

The Nikkei 225 surged above the 50,000 mark for the first time, trading around 50,500 on optimism toward the new administration's policies. On the monthly chart the index has risen for seven straight months, with October's gain nearing 6,000 yen. While investors appear to expect "Sanaenomics," the monthly RSI near 76 signals overheating and raises the likelihood of a corrective phase ahead.

This week is packed with major central bank events—BOJ, FOMC, and ECB. Markets may find clues about whether USD/JPY continues higher into year-end.

Technical (daily & H1): On the one-hour chart, the Ichimoku baseline and 52EMA are acting as support, and price recently rebounded near the 90EMA, underscoring the influence of longer averages. Bullish momentum has slowed, but with the cloud below, downside looks contained for now. Until the BOJ, range-bound action is the base case.

Key data today (JST): U.S. Durable Goods Orders 21:30. (Some U.S. releases may be delayed due to the ongoing government shutdown.)

USD/JPY 1-hour chart showing Ichimoku baseline, 52EMA and 90EMA (Oct 27, 2025)
USD/JPY – 1-Hour Chart