USD/JPY Strategy - Thanksgiving Holiday in the U.S., Technical Buying in Yen

Fundamental Analysis:

USD/JPY has softened recently, likely driven more by technical movements than fundamental factors. As month-end and year-end accounting settlements approach, investors often repurchase yen. Additionally, Israel’s ceasefire agreement has reduced the safe-haven demand for the dollar, and U.S. Treasury yields have declined, weakening support for USD bulls. With the U.S. Thanksgiving holiday starting tomorrow, watch out for potential large fluctuations due to lower trading volumes and increased risk of price gaps.

Technical Analysis:

The 15-minute chart for USD/JPY shows the price moving within a descending channel. There is a possibility for the price to retrace to a supply-demand zone to regain momentum. Therefore, short positions can be initiated in the supply zone, with stop-losses placed above the channel’s top and targets set at the bottom of the channel or the recent low.

Recommendation: Short at 153.351 or better.

Stop Loss: Above 153.718. Target: 152.984.

Support Level: 152.504. Resistance Level: 153.718.

Disclaimer: The above content is for reference only and does not represent the platform's stance. Stick to your own strategy and ensure appropriate risk management.