The USDJPY pair experienced a rise after the US NFP report exceeded forecasts, causing a short-lived hawkish shift in interest rate expectations. Despite this, weaker wage growth resulted in only two anticipated rate cuts by year-end, which led to reduced support for the USD and a loss of initial gains.<\/p>\n
The JPY remains unchanged fundamentally, with its currency movements mainly influenced by risk sentiment. The BoJ maintained interest rates at 0.5% and adjusted its bond tapering plan for fiscal 2026 as expected. They focus on the US-Japan trade deal and inflation changes before considering rate adjustments.<\/p>\n
On the daily chart, USDJPY is confined within a 142.35 support and 146.00 resistance range, lacking detailed insights. The 4-hour chart shows price movement above the 144.25 key area post-NFP report, with potential for further upside toward 146.28 resistance. Buyers aim to maintain position above this zone, while sellers target a drop to 142.35 support.<\/p>\n
The 1-hour chart highlights a minor upward trendline supporting bullish momentum. Buyers aim to maintain upward pressure, with potential for new highs, while sellers focus on breaking lower to reinforce bearish activities toward the 142.35 level. Red lines indicate today’s average daily range.<\/p>\n
Following on from recent price action, we see that the initial post-NFP surge in USDJPY has faded somewhat, largely because the pick-up in job creation did not align with meaningful wage inflation. This diminishes the case for extended USD strength. The dollar initially strengthened after the better-than-expected US employment report, but expectations for deeper policy changes were quickly dampened as softer earnings data painted a more tempered picture. As a result, only two rate reductions are now pencilled in for the remainder of the year.<\/p>\n
With interest rate decisions holding steady in Japan, and the Bank of Japan making only minor adjustments to long-term bond reduction plans, attention now shifts elsewhere. Tokyo’s monetary stance remains predictable for now, which means day-to-day price swings continue to be driven by fluctuations in global equity markets and general investor confidence rather than domestic developments. Any sharp reversals in global sentiment should not be overlooked.<\/p>\n
On the charts, price activity has prioritised holding levels above 144.25 for the time being, supported by short-term trendlines that remain active. Movement has not been very impulsive, suggesting traders are content to consolidate before the next push. Volatility around the 144.80\u2013145.50 region could offer short-term opportunities, as price attempts to test the weekly high once more.<\/p>\n
Spot value being compressed between well-defined resistance at 146.00 and floor support at 142.35 builds the case for either a gradual push higher if buyers continue adding, or a sharper correction if that upward slope is broken. Any material trade ideas above these levels remain limited without confirmation.<\/p>\n
From our view, tracking momentum along the smaller timeframes proves useful since these provide more clarity than the broader daily chart, which still lacks decisive directional signals. Lower timeframes reflect more immediate sentiment changes and have shown small buying bursts, but those have lacked volume follow-through.<\/p>\n
Breaks beneath 144.25 could encourage profit-taking from recent longs, and a slip under the hourly trendline would pressure the pair into testing the lower boundary near 143.50. Anything further might invite a run toward 142.35, especially if macro headlines weigh on risk-taking behaviours.<\/p>\n
As we monitor forward, staying calibrated to reaction levels\u2014rather than predicting breakout direction\u2014makes for better trade setups. Watching carefully for sessions where trading volume accelerates near key levels can signal more sustainable directional moves. It’s the alignment of price structure with momentum and sentiment that gives us the better edge.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" USDJPY rose post-NFP surprise, but weak wages trimmed gains; charts show mixed momentum amid key levels.<\/p>\n","protected":false},"author":62,"featured_media":17051,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-25830","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t