Fundamental Analysis

• Japanese 10-year government bond yields have surpassed 1.5%, reflecting rising long-term interest rates.
• Meanwhile, U.S. 10-year Treasury yields are also trending higher, driven by market concerns over increasing fiscal spending by the U.S. government.
• These twin pressures are pushing USDJPY lower, fueled by both yen strength and dollar weakness.

USDJPY Technical Analysis

USDJPY continues to trend downward. The pair has been oscillating between Fibonacci retracement levels on the weekly chart—specifically the 50%, 38.2%, and 23.6% levels. Currently, it has broken below the 23.6% line, settling into the low 143 range.

The strengthening yen is primarily attributed to rising Japanese long-term yields. As yields rise, the yen tends to attract more demand.

At the same time, growing concerns over U.S. fiscal stability are creating downward pressure on the dollar. With USDJPY continuing to print lower lows, the next key psychological level is the 140.00 mark.

Historically a strong support zone, this level bears watching for any signs of reversal or breakdown.

Intraday Trading Strategy (1-Hour Chart)

The 1-hour chart reveals a clear rejection at the 52-period moving average and a breach below the 10-period MA. The recent low of 143.28 will be closely watched to see if today brings a fresh decline.

The direction of 10-year yields in both Japan and the U.S. remains the dominant theme. Should Japan’s yield approach 1.6%—currently at 1.55%—the yen may gain even more momentum.

Trade Bias: Bearish
Consider short positions on pullbacks to the 10-period MA.
Stop-Loss: A confirmed break above the 52-period MA.
Take-Profit Target: Around 142.75.

Support & Resistance Levels to Watch:

143.28 JPY – Yesterday’s low

Gold Market Sentiment

• Sell: 38%,Buy: 62％

Key Economic Events Today

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