Fundamental Analysis

• U.S.–China trade talks have been confirmed and are reportedly set to take place in Switzerland later this week.
• Expectations for easing tensions between the two nations are rising, which could trigger USD buying and lift global equity markets.

USDJPY Technical Analysis

USDJPY has declined for three consecutive sessions, slipping into the 142JPY area after the U.S. administration announced tariffs on foreign films—news that weighed on risk sentiment. The pair reversed lower from resistance at 145.90JPY, breaking a short‑term up‑trend line. RSI has retreated to 43, underscoring a strengthening down‑bias.

With USD weakness pronounced and outflows from U.S. assets mounting, the focus now shifts to tonight’s FOMC decision (rates expected to remain unchanged) and President Trump’s reaction. Equities are likely to stay under downward pressure.

Day trading strategy (1 hour)

After a downside break from a descending triangle, USDJPY fell to the low‑142JPY zone before rebounding toward the upper‑142JPY area on headlines that the trade talks will occur this week. With the FOMC looming in the early hours of tomorrow, a wait‑and‑see attitude may dominate today’s session.

Although short‑term positioning is tricky, support below 142JPY appears solid. Should the pair dip toward the mid‑142JPY region—assuming positions are closed before New York close—a quick long trade could be considered.

Support/Resistance lines

Key support and resistance lines to consider:

• 145.90JPY – recent high
• 143.50JPY – 200‑day moving average
• 142.35JPY – recent low

Market Sentiment

USDJPY – Sell: 34% / Buy: 66%

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.