USDJPY - 5 Feb - break trendline, continue to decrease

Feb 5

USDJPY trend forecast February 5, 2025

The Japanese Yen (JPY) gains fresh demand after data released during the Asian session on Wednesday indicated an increase in Japan’s real wages, reinforcing expectations that the Bank of Japan (BoJ) will implement another rate hike. This stands in contrast to market projections that the Federal Reserve (Fed) will cut interest rates twice before the year ends. The resulting narrowing of the interest rate gap between Japan and the US further strengthens the lower-yielding JPY.

Additionally, a weaker US Dollar (USD) has pushed the USD/JPY pair down to the mid-153.0s, marking its lowest level since December 18. Meanwhile, concerns persist that Japan could eventually become a target of US President Donald Trump's trade tariffs. This, combined with a broader risk-on sentiment, might prevent traders from aggressively buying the safe-haven JPY. However, the overall market outlook remains supportive of further JPY appreciation.

USDJPY continues its strong downtrend - DXY is returning to a more stable price zone. USDJPY breaks the H1 trendline and will continue to decline.

/// SELL USDJPY: zone 153.800 - 154.000

SL: 154.300

TP: 40 - 70 - 150pips ( 152.500 )

Safe and profitable trading

Feb 5

Trade active

Great Sell, the trend of accurate reduction. Miss Entry Plan Sell.