USD/JPY: Price Range Between 155.00 and 151.00
Current Trend
Due to the strengthening of the U.S. dollar, the USD/JPY pair is currently in an uptrend, adjusting at 154.83. Despite Japan’s stable economic indicators, the inauguration of U.S. President-elect Donald Trump has led to a worsening international trade environment, limiting Japan’s shift towards a more hawkish stance by the Bank of Japan. Most experts expect no significant changes in borrowing costs until early next year. Additionally, Japan’s machinery orders surged from -6.5% to 9.3% in October, reaching the highest levels since June 2022. Attention is focused on Japan’s Q3 GDP data, due to be released at 01:50 (GMT+2) on Friday, with expectations that a slowdown in growth will put pressure on the yen.
The U.S. dollar continues to maintain its uptrend, trading around 105.90 on the USDX. At 15:30 (GMT+2), the U.S. Consumer Price Index (CPI) for October will be released, with expectations of a 0.2% monthly increase and a rise from 2.4% to 2.6% year-on-year. Minneapolis Federal Reserve President Neel Kashkari stated that the inflation rise is within expected ranges, though opinions diverge on the scale and direction of future interest rate adjustments.
Support and Resistance Levels
On the daily chart, the instrument is in a local uptrend within the 155.00–151.00 range. Technical indicators are signaling buying, with the fast EMA of the Alligator indicator diverging from the signal line, and the AO histogram forming correction bars in the buy zone.
- Resistance Levels: 155.50, 158.50
- Support Levels: 154.00, 151.30
Trade Suggestions
- Long Position: It is recommended to open a long position after the price breaks above 155.50 and establishes itself, targeting 158.50. The stop loss should be set at 154.00.
- Short Position: If the price breaks below 154.00 and establishes itself, consider opening a short position with a target of 151.30. The stop loss should be set at 156.00.
| Scenario | Timeframe | Recommended | Entry Point | Take Profit | Stop Loss | Key Levels |
|---|---|---|---|---|---|---|
| Main Scenario | Weekly | BUY STOP | 155.50 | 158.50 | 154.00 | 151.30, 154.00, 155.50, 158.50 |
| Alternative Scenario | Weekly | SELL STOP | 154.00 | 151.30 | 156.00 | 151.30, 154.00, 155.50, 158.50 |
Monitor price action closely around the key levels, particularly 155.50 and 154.00, to gauge the next potential movement.
