Fundamental Analysis

  • USD/JPY is currently moving within a range around the 153 level, with no clear market direction. U.S. CPI has slowed, leading to lower long-term yields and increased dollar-selling pressure. Although a potential double bottom is forming on the daily chart, moving averages remain in a bearish perfect order, showing mixed signals. In the short term, a range between 152.50 and 153.50 is expected, making range trading strategies preferable.

Fundamental Analysis
 The market is struggling to determine direction.
U.S. Consumer Price Index (CPI) declined, and long-term yields fell.

Will It Rebound from Solid Support?

USD/JPY appears to be forming a double bottom. However, moving averages are aligned in a bearish perfect order, and technical indicators are giving mixed signals.

On the daily chart, the pair has rebounded near the firm support level around 153. However, there is a possibility of rejection at the 10-day moving average. With U.S. CPI cooling, dollar-selling pressure has increased, suggesting that excessive yen weakness may be less likely.

Traders should watch whether the pair rejects at the 10-day moving average and makes a new low. Given the lack of a clear trend, utilizing range trading strategies on the 1-hour and 4-hour charts may be appropriate.

[USD/JPY – Daily Chart]

Strong Support, but Weak Rebound

On the 1-hour chart, USD/JPY is forming a range between 152.50 and 153.50, currently building energy for its next move. With no clear directional bias, focusing on range strategies is advisable. As this is no longer a one-sided yen-weakness market, trading difficulty has slightly increased.

As long as price remains inside the Ichimoku cloud, a range strategy may be appropriate: short-term selling in the upper 153 area and short-term buying in the lower 152 area.

[USD/JPY – 1-Hour Chart]

Today's Economic Indicators
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