The US dollar rose against the yen in recent hours, supported by rising US bond yields and consistent inflation data that maintained the possibility of continued tight monetary policy.
Conversely, the Bank of Japan remains accommodative, with no indications of a rate hike in the near future, leaving the yen weak against major currencies.
The pair’s volatility over recent sessions reflects the tension between divergent monetary policies, making movements vulnerable to any new statements from the US Federal Reserve or Japanese policymakers
Technical Indicator Analysis
Moving Averages
The price has started moving above the 50 and 100 averages, but is still below the 200 average.
Signal of a possible short upward correction
MACD
A clear bullish crossover, with bars in the positive zone.
Supports a corrective trend towards resistance.
Stochastic
In the overbought zone (above 80).
May precede a limited corrective decline after testing resistance.
Possible Scenarios
Bullish Scenario
If 144.29 is broken with a clear close, the pair may head towards 145.00 – 145.50.
The trend will only be confirmed with a daily close above 146.00
Bearish Scenario
If the pair fails at 144.00 – 144.29, it may return to the decline to 143.32.
A break of 143.00 will re-establish negative pressure to test 142.78 again.
Trading strategies based on Buy/Sell levels
| In case of buying | in case of selling | USDJPY |
| 143.871 | 143.323 | Entry point |
| First resistance: 143.871 | First support: 143.00 | Target Point 1 (TP1) |
| Second resistance 144.462 | Second support 142.701 | Target Point 2 (TP2) |
| 143.323 | 143.871 | Stop Loss (SL) |
The market is currently attempting a short upward reversal, but within a general trend that remains weak due to the price’s failure to surpass the 200 moving average.
Continuing the current momentum is contingent upon a break of 144.29; otherwise, the current correction wave may end quickly.
The best strategy currently: Buy cautiously from support, sell from resistance with confirmation from indicators, and activate a stop loss near pivot points.
