USD/JPY Strategy - BoJ's Conservative Stance Weakens Yen to Recent Lows

Fundamental Analysis:

Yesterday, the Bank of Japan (BoJ) maintained its interest rates, with Governor Kazuo Ueda stating that more time is needed to evaluate domestic wage growth and the impact of new U.S. policies. These effects are expected to become clearer by March to April next year. Additionally, Ueda downplayed the impact of yen depreciation on import inflation and did not emphasize the urgency of raising rates, leading to the yen's continued weakness. However, looking ahead, the yen's rapid short-term depreciation could attract government attention, raising the possibility of intervention. It is also worth noting whether the trend might reverse due to overextension.

Technical Analysis:

On the one-hour chart, USD/JPY surged to a new high before pulling back, forming a recent low. This indicates increased selling pressure above. If subsequent rebounds fail to break resistance, the trend may undergo further downward correction. Aggressive traders are advised to consider short positions.

Trading Recommendations:

Short at 157.27, with a stop-loss above 157.95, and target 155.05–156.15.

Support level: 155.05 Resistance level: 157.27

Disclaimer: Trading involves certain risks, and these recommendations do not guarantee profit. Investors should assess their capital and position management capabilities.