USD\/JPY found support near 155.35 on Wednesday after pulling back from a two-week high set the day before. It traded around 155.75, little changed on the day, and kept the upward move seen over the past week.<\/p>\n
The US dollar faced selling despite a hawkish Federal Reserve outlook, as concern about US President Donald Trump\u2019s trade policies and wider geopolitical risks supported safe-haven demand for the yen. This led to some intraday pressure on USD\/JPY.<\/p>\n
Reports said Japan\u2019s Prime Minister Sanae Takaichi raised concerns about further rate rises in a meeting last week with Bank of Japan Governor Kazuo Ueda. Japan also nominated two reflationists to the BoJ board, which reduced expectations for the pace of rate hikes and limited yen strength.<\/p>\n
Technically, repeated rebounds from the 200-day EMA breakout area support a bullish bias. The MACD has moved above its signal line and back into positive territory, while the RSI is around 54 and above its midline.<\/p>\n
Resistance is at 156.90, then 158.40, with 160.00 above that if 158.40 breaks. Support sits at 155.00, then 153.50, and 152.70 near the 200-day EMA.<\/p>\n
Looking back at our analysis from 2025, the constructive technical setup we identified for USD\/JPY proved to be accurate. The pair successfully broke through the key resistance levels of 158.40 and eventually surpassed the significant 160.00 mark later that year. This confirms the underlying strength we saw building, rewarding those who positioned for further appreciation.<\/p>\n
The fundamental reasons for Yen weakness have largely remained in place, as we suspected they might. The Bank of Japan has maintained its cautious stance, a view now supported by recent data showing Japan’s core CPI for January 2026 came in at 1.9%, still hovering just below the official 2% target. This persistent undershoot continues to delay any serious expectations for a hawkish policy shift from the BoJ.<\/p>\n
On the other side of the pair, the US Dollar is facing some headwinds, just as concerns were emerging in 2025. We’ve seen US weekly jobless claims tick up to 235,000 this month, the highest level in several quarters, suggesting a slight cooling in the labor market. This dynamic is preventing a runaway rally in the pair and creates opportunities on any dips.<\/p>\n
Given this continued upward trend moderated by a softer dollar, traders should consider buying call options to capitalize on further gains while managing downside risk. With the spot price currently trading around 161.50, purchasing out-of-the-money calls, such as those with a 163.00 strike price expiring in the next few weeks, offers a defined-risk way to stay long. This strategy allows us to profit from a continued move higher without being exposed to a sharp, unexpected pullback.<\/p>\n
The 160.00 level, which was our ultimate upside target in 2025, has now become a critical support zone. We should use this psychological and technical area as our new line in the sand. Any sustained break below 160.00 would invalidate our immediate bullish thesis and signal that a deeper correction is underway.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" USD\/JPY held support near 155.35, sustaining weekly gains; dollar cautious, yen supported; key levels remain.<\/p>\n","protected":false},"author":62,"featured_media":17043,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-43588","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/43588","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=43588"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/43588\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/17043"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=43588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=43588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=43588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}