Fundamental Analysis

• U.S. Treasury Secretary Bessent clarified that there is no currency target, easing JPY appreciation sentiment.
• The Trump administration has softened its previously aggressive stance toward both China and the Federal Reserve.

USDJPY Technical Analysis

The USDJPY rebounded after hitting a low of 139.88JPY, forming a bullish engulfing candlestick. This strong rebound coincides with easing risk-off sentiment.

Following the much-anticipated meeting between Treasury officials, Secretary Bessent stated there would be no currency target, which helped ease JPY-buying pressure. Additionally, reports indicated that there are no intentions to dismiss the Fed Chair, a more conciliatory tone toward China, and a possible peace agreement with Russia—all contributing to a more risk-on market mood, with U.S. equities rising.

The next key target appears to be 144JPY, which corresponds to the 23.6% Fibonacci retracement on the daily chart.

Day trading strategy (1 hour)

The 1-hour USDJPY chart shows that the 52-period moving average is trending upward. The pair has climbed to around 143.57JPY, suggesting short-term reversal signs.

As a day trading approach, a buy-the-dip strategy may be appropriate. One might consider testing a long entry around 142.20JPY, while being cautious of sudden price moves. If the price falls below the 52-period MA, it should be taken as a stop-loss signal.

Support/Resistance lines

Key support and resistance lines to consider:

• 144JPY – Daily Fibonacci level

Market Sentiment

USDJPY – Sell: 45% / Buy: 55%

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