Fundamental Analysis

• The Trump administration continues to implement executive orders, with tariff-related measures under consideration.
• The Bank of Japan (BOJ) policy meeting is scheduled for tomorrow, leaving USDJPY in a tight range.

USDJPY Technical Analysis

Analyzing the daily chart for USDJPY, the pair has risen for two consecutive days. Although USDJPY dropped to the 154 JPY level, the pair has been climbing due to policies by the Trump administration that tend to exert upward pressure on USD. However, the upward momentum remains limited.

The BOJ policy meeting is set for tomorrow, with an interest rate hike anticipated. Hawkish statements by the BOJ governor and deputy governor have led the market to see this as a foregone conclusion. If no rate hike occurs, it would be a major surprise. However, if a hike is implemented, it may increase JPY strength.

Focus will be on whether USDJPY breaks below the ascending trendline.

Day trading strategy (1 hour)

Analyzing the 1-hour chart for USDJPY, the pair has risen to 156.70 JPY, making further buy entries challenging. However, it is difficult to feel secure until the BOJ’s interest rate decision is announced. This is likely to be a period of limited movement.

Today, a short-term contrarian sell strategy is recommended in anticipation of tomorrow’s BOJ policy meeting.

Enter sell positions if USDJPY rises to the pivot resistance levels of 156.90 JPY or 157.50 JPY, and set a stop above 158 JPY.

Support/Resistance lines

Key support and resistance lines to consider:

• 157.50 JPY: Pivot R2
• 156.90 JPY: Pivot R1

Market Sentiment

USDJPY Sell: 53% / Buy: 47%

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.