USD/JPY Strategy - Fed Confirms Economic Strength, BOJ Stance Uncertain

Fundamental Analysis:

Last night, U.S. economic data continued to impress. Although PMI growth slowed, it remained in expansion territory. Later, Fed Chair Powell's remarks confirmed that the current economic environment is stronger compared to September. The Fed's Beige Book also showed increased economic activity and greater business optimism about demand prospects, providing reasons for slowing the pace of rate cuts in the future.

Meanwhile, this morning, a Bank of Japan (BOJ) official made dovish comments, expressing doubts about the sustainability of wage growth and predicting that inflation would remain below 2% next year. This contradicts the BOJ's earlier rate hike expectations driven by data, limiting the yen's upward momentum.

Technical Analysis:

The 30-minute chart for USD/JPY shows the price is within an upward range. If the price corrects into the demand zone, long positions can be entered at the unfilled demand levels. Set the stop loss below the lower boundary of the range and aim for a 1:1 risk-reward ratio or extend the target to the current trend high as a flexible goal.

Recommendation:

Buy at 149.440 or better.

Stop Loss: Below 148.643. Target: 150.236.

Support Level: 148.643 Resistance Level: 151.226

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