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Usdjpylongsetup

Asian currencies hit bottom: Pressure from the FedUSD Rises on U.S. Economic Strength and Trump’s Tax Policies, Dragging Asian Currencies to a 20-Year Low Asian currencies fell to their lowest levels in 20 years as the USD maintained its strong position, fueled by the U.S.'s superior economic growth and President-elect Donald Trump's commitment to raising import taxes. The Bloomberg Asia Dollar Index dropped to 89.0409 on Monday, the lowest since data began in 2006. The USD rally has been supported by the Federal Reserve's cautious stance on interest rate trajectories and expectations that Trump’s tax policies will exert inflationary pressures. “USD will continue to appreciate against Asian currencies, but the degree will vary across countries,” said Alvin T. Tan, Head of FX Strategy at the Royal Bank of Canada. He noted that if U.S. trade protectionism materializes, it could be a "game-changer." Asian central banks might respond by allowing their currencies to depreciate in a controlled manner. The Bank of Japan (BoJ) is drawing global investors’ attention as one of the few major central banks maintaining a tight monetary policy amidst a trend of easing. With plans to hike interest rates at least once in 2025, BoJ’s move is expected to have positive effects on the banking sector. Notably, while BoJ intends to raise rates, the interest rate gap between Japan and major economies, especially the U.S., is expected to remain significant. This could put downward pressure on the yen, while simultaneously providing a competitive advantage to Japanese exporters. However, a potential risk lies in increased selling pressure on Japanese government bonds if BoJ opts for quantitative tightening. Trading Strategy The main trend for USDJPY remains strongly bullish in the long term, so it’s recommended to focus on buying at lower support levels to optimize profits and align with the dominant trend. Strategy Buy Zone: 157.200 Stop Loss (SL): 156.600 Take Profit (TP): 157.900 Sell Zone: 158.800 Stop Loss (SL): 159.300 Take Profit (TP): 158.000 Pay attention to full TP SL to protect your trading account
Long
by KevinNguyen-SimpleTrade
USDJPY trading strategy in the last days of the yearJapan's Finance Minister: Appropriate Actions to Be Taken for Excessive Exchange Rate Volatility The Minister declined to comment on the likelihood of achieving the basic budget surplus target in the next fiscal year. Recently, he expressed concerns about strong and unilateral exchange rate fluctuations. Stability in exchange rates is crucial, reflecting the actual economic conditions. He highlighted particular concern over exchange rate fluctuations driven by speculative activities. Japan will take appropriate actions if exchange rates exhibit excessive or abnormal volatility. These remarks indicate a stronger verbal intervention. The USD/JPY rate has retraced to lower levels during trading sessions. The Bank of Japan (BoJ) decided to maintain its policy rate at 0.25% during the meeting held on December 18–19. However, the possibility of a rate hike cannot be ruled out if the yen weakens significantly, with the USD/JPY currently hovering below 154. The meeting also announced a comprehensive review of the BoJ's past monetary policies, aiming to assess both the strengths and weaknesses of its ultra-loose monetary policy. Additionally, the BoJ may outline plans to gradually reduce its ETF holdings starting in 2026. Asian Market Update: USD/JPY Drops to 157.50 The USD/JPY pair touched 158.09 earlier today, marking its highest level since mid-July 2024. However, it has since dropped to 157.50 following Tokyo's December inflation data, which accelerated for the second consecutive month. At the same time, the Japanese government announced cuts in utility subsidies. In China, industrial profits continued to decline for the fourth consecutive month, with a 7.3% drop in November—less severe than the 10% drop in October. On a year-to-date basis through November, profits fell 4.7%, reflecting persistent challenges in the country's industrial sector. Trade Recommendations Buy: 157.300 - 157.100 Stop Loss (SL): 154.800 Sell: 159.100 - 159.300 Stop Loss (SL): 159.600 For now, USD/JPY is expected to complete a minor corrective downward structure before resuming its strong upward trend. Traders should take note of quick profit-taking on sell positions and look for buy opportunities near support levels. The USD (DXY) remains robust and is anticipated to continue its strong upward trajectory into next year.
Long
by KevinNguyen-SimpleTrade
USDJPY – What's the intervention threshold? USDJPY – What's the intervention threshold? In September of last year, the Bank of Japan (BOJ) made a move in the market to strengthen its currency when it reached 145 against the USD, marking the first such intervention since 1998. This action was taken following the BOJ's decision to maintain an extremely accommodative policy (a policy that is yet to change still). The BOJ intervened once more in October when the yen further plummeted to its lowest level in 32 years, reaching 151.94 against the dollar. At present, investors hold a substantial short position in the yen, valued at $9.793 billion, representing the largest such position in the USDJPY since May 2022. This value has nearly doubled in just the past three months. Notably, former Japanese Vice Finance Minister Eisuke Sakakibara has suggested that the USDJPY could reach 160 before the BOJ intervenes once again. However, the USDJPY has recently built a bit of a buffer between itself and whatever the intervention threshold is for the BoJ. Over the past two trading days, the US dollar has weakened, largely due to remarks made by Federal Reserve officials. These statements have strengthened the belief that the US central bank is nearing the end of its tightening phase. It is widely anticipated that Fed policymakers will implement a rate increase during their upcoming meeting this month, which would set the policy rate range at 5.25% to 5.50%. However, the timing of any subsequent rate hikes remains uncertain. There are questions whether they will raise rates again in September, delay until November, or maintain the current stance and allow inflation to naturally subside over time. Consequently, the US dollar has experienced a decline against the yen, reaching a low of 141.32 yen, the lowest level observed since June 21. Currently, it is down 0.5% at 141.328. This drop follows a decrease of nearly 1.3% seen last Friday when the US nonfarm payrolls for June fell short of market expectations at 209,000.
by BlackBull_Markets
USDJPYDear traders, As I have been accustomed to in recent months and this time my technical analysis had an accuracy rate of over 95% and I will try to continue to keep this percentage as long as possible As I said in the last weeks .. s I said UJ rejected from the Fibonacci 0.5 ... it went down in the area 108,600 from where it rejected again and goes again to the Fibonacci 0.5 area making a range between these values! In the next period I expect this range to continue and I will play between the Fibonacci 0.5 and Fib 0.382 areas until the first closing on the chart for a week outside these values. THIS WEEK...as I said last week, UJ remained in the range between 0.5 and 0.382 Fibonacci levels, which I think will reach this week! NOTE: Please, give a LIKE if you find this idea useful! GREAT ATTENTION: *This information is not a Financial Advice.
by BloomFX_SIGNALS
USDJPY Dear traders, As I have been accustomed to in recent months and this time my technical analysis had an accuracy rate of over 95% and I will try to continue to keep this percentage as long as possible As I said in the last weeks .., UJ has forced the trend line formed in recent years and strongly rejected! UJ is in a range area between 110,200 and 108,200 but as you can see from the trend line for 1 week and from the Fibonacci for 1 month ... it is a lowering range reason why I will continue to look for SELL even if UJ will test the trend line again! | However ... a close even for 1 day above the trend line forces me to think of BUY until the Fibonacci 0.5 area from where ... DOWN AGAIN THIS WEEK...UJ forced the Fibonacci 0.5 zone from where it rejected and re-entered the range zone we were talking about in the past weeks! I still bet on a descent to the 108,460 area and from there UP AGAIN however ... a closure even for 1 day over the 111,000 area makes me think again of BUY up to the 12,800 area which is my final target for this period! NOTE: Please, give a LIKE if you find this idea useful! GREAT ATTENTION: *This information is not a Financial Advice.
by BloomFX_SIGNALS