Fundamental Analysis

• President Trump announced plans to send tariff rates to each country within two weeks
• U.S. CPI falls short of expectations for the fourth consecutive month

USDJPY Technical Analysis

Analyzing the daily USD/JPY chart, the pair bounced lower from a descending trendline, with the 52-day moving average acting as strong support. The key support level lies at 142.20, and the pair is moving within a narrowing triangle pattern. The range seems to be tightening.

President Trump’s unilateral tariff announcement has rattled markets. However, relief was seen following the U.S.-China trade agreement.

Meanwhile, Middle East tensions are creating a strong risk-off mood. Crude oil has surged, and gold is also rising. This makes it difficult for USD/JPY to gain upside traction.

For now, a narrow range is expected to continue, with resistance near the 145 yen area and support around 142 yen.

Day Trading Strategy (1-Hour Chart)

On the 1-hour chart, a rising wedge formation emerged, indicating a potential reversal. A completed Wolfe Wave also suggests the price has reached a profit-taking zone. Selling pressure appears to have subsided for now.

Given the current market conditions, it is hard to take a bullish stance. Instead, consider a sell-on-rally strategy around the 145 level:
Set a sell limit at 144.42, stop at 144.70, and take profit at 143.50.

Support and Resistance Levels

Support and resistance levels to watch going forward:

• 142.20 – Strong support level

Market Sentiment

USDJPY

• 39% short ／ 61% long

Key Economic Events Today