USD/JPY Strategy - Tokyo CPI Rises, Boosting Confidence in BOJ

Fundamental Analysis:

Japan's October unemployment rate rose slightly from 2.4% to 2.5%. However, the November Tokyo CPI annual rate and core Tokyo CPI annual rate, which serve as leading indicators for national inflation, showed a noticeable increase. This indicates rising price pressures after the Japanese government reduced energy subsidies. The higher-than-expected inflation figures are likely to strengthen the Bank of Japan's (BOJ) stance on tightening rates. Following the release of the data, Japanese stocks fell, and the yen appreciated in the short term.

Technical Analysis:
On the USD/JPY hourly chart, the highs and lows are trending downward, and recent lows have been broken, indicating strong selling pressure. If the subsequent rebound fails to break past previous resistance levels, the downtrend may continue. Thus, short-selling is recommended.

Trading Recommendation:
Short-sell USD/JPY at 150.70, with a stop-loss above 151.57 and targets between 148.30 and 149.10.

Support Level: 149.10 Resistance Level: 150.70

Risk Warning: Trading involves certain risks. The recommendation is not a guarantee of profit. Investors should assess their own funds and position management carefully.