U.S.–U.K. Reach Trade Agreement, USDJPY Rises to the Upper-145 JPY Zone【May 9, 2025】
Fundamental Analysis
The new U.S.–U.K. trade pact boosted risk appetite, lifting USDJPY to its 52-day moving average.
U.S.–China negotiations are scheduled for this weekend—watch for a possible gap when markets reopen on Monday.
USDJPY Technical Analysis
USDJPY surged from the 143 JPY area to 145.90 JPY on the trade-deal headlines, with the 52-day moving average capping gains for now.
RSI is at 55, underscoring the prevailing upward momentum. A clean break above the 52-day MA would push price into the Ichimoku cloud; if risk appetite persists, the next objective is likely around 148 JPY.
With U.S.–China talks imminent, traders should be cautious about holding positions over the weekend.
Day trading strategy
On the 1-hour chart, RSI has slipped below 70 and a small double-top is visible, confirmed by a recent bearish engulfing candle that sliced through the 10-period MA.Given the strong resistance at the 52-day MA noted above, intraday bias is mildly bearish until the U.S.–China outcome is known.
Trade idea: Short USDJPY with profit-taking in the high-143 JPY range.
Stop-loss: Above the recent swing high at 146.20 JPY.
Support/Resistance lines
Key support and resistance lines to consider:
146.20 JPY – yesterday’s high
145.00 JPY – psychological round number
Market Sentiment
USDJPY – Sell: 54% / Buy: 46%
Today’s important economic indicators
Economic Indicators and EventsJapan TimeSpeech by the Bank of England Governor17:40Canada Employment Report21:30
*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.
Risk Disclaimer
This analysis is for educational purposes only and does not constitute investment advice. Trading forex and CFDs involves significant risk and may not be suitable for all investors. Past performance is not indicative of future results.
This analysis is for educational purposes only and does not constitute investment advice. Trading forex and CFDs involves significant risk and may not be suitable for all investors. Past performance is not indicative of future results.
