The Japanese yen remains under pressure, trading near its lowest level since February as PM Takaichi signals preference for keeping rates low.
Entry Zone: Buy dips to 153.80-154.00 area
Stop Loss: Below 153.20
Targets: 154.99 resistance first, then 155.77 if upward momentum continues
Catalyst Watch: US government shutdown resolution, potential Japanese intervention
Trading Rationale
The USD/JPY shows significant bullish structure:
- Price action pushing toward multi-month highs
- PM Takaichi’s comments underscoring preference for keeping interest rates low
- Optimism over US government shutdown resolution undermining safe-haven JPY
- BoJ reluctance to commit to further rate hikes amid Japan’s fragile recovery
The critical dynamic driving this pair is the diverging policy stances – BoJ’s cautious approach versus ongoing discussions about when (not if) the Fed will resume cutting rates.
Traders should remain alert for potential Japanese intervention if the move accelerates too quickly. While BoJ policymakers left the door open for a December rate hike, Takaichi’s pro-stimulus stance may delay any monetary tightening.
The key resistance at 154.99 will be decisive – a break above could trigger stops and accelerate the move toward 155.77.
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