USD/JPY Strategy - U.S.-Japan Yield Spread Widens, Yen Under Depreciation Pressure
Fundamental Analysis: Recently, U.S. economic data has heightened market expectations that the Federal Reserve may slow its pace of rate cuts next year. As a result, U.S. Treasury yields have risen, widening the 10-year government bond yield spread between the U.S. and Japan. A wider yield spread makes the U.S. dollar more attractive relative to the yen, increasing depreciation pressure on the yen. If this week's dot plot suggests a reduced scale of rate cuts and Fed Chair Powell takes a hawkish stance, the U.S.-Japan yield spread may further widen, adding more pressure on the yen. Technical Analysis: Trade Recommendation: Long USD/JPY at 154.081 and 153.836. Stop-loss: 153.441. Target: 154.720. Support Level: 153.441 Resistance Level: 154.720 Disclaimer: The above content is for reference only and does not represent the platform's stance. Investors should exercise their judgment, manage risks properly, and take responsibility for their profits and losses.
The 30-minute chart shows higher highs and lows, indicating a bullish trend. Two batches of funds can be deployed for low-entry long positions, with stop-losses below the previous low and targets set at the extended price level.
