USD/JPY Strategy - Pay Attention to This Week's Employment Data, USD/JPY Remains Weak

Fundamental Analysis:

This week’s economic data from Japan indicates that the economy is stabilizing. Combined with previous statements from officials and rising inflation, market expectations for another rate hike by the Bank of Japan have increased, causing the yen to show short-term strength and leading to a decline in USD/JPY. Additionally, yesterday’s U.S. employment data showed signs of improvement, alleviating the panic caused by previous weak employment reports. This temporarily strengthened the dollar, leading to a rebound in USD/JPY. However, based on economic data, inflation, and statements from officials, the probability of a rate cut in the upcoming policy meeting remains high. As the interest rate differential between the two central banks narrows, USD/JPY is expected to remain weak.

Technical Analysis:

On the USD/JPY one-hour chart, the rebound highs are gradually declining, and subsequent lows are also being breached, showing a downtrend in both highs and lows. This indicates an overall weak trend. If the rebound fails to overcome resistance, the downward trend is likely to continue. Therefore, it is recommended to take a light short position at the resistance level of 149.95, targeting 148.10, with a stop loss at 150.85.

Trading Recommendation:

Open a light short position at resistance 149.95.

Target: 148.10. Stop Loss: 150.85.

Support Level: 148.10; Resistance Level: 149.95.

Disclaimer: The above content is for reference only and does not represent the platform’s stance. Stick to your own strategies and implement proper risk management.