The USD\/JPY has surpassed a descending trendline after consolidating near 149. This suggests potential growth toward the 155.40\u2013156.50 levels, according to Soci\u00e9t\u00e9 G\u00e9n\u00e9rale’s FX analysts.<\/p>\n
The USD\/JPY’s movement within a brief consolidation phase managed to hold its position around the previous gap levels near 149. By breaking out above this range and surpassing a multi-month descending trendline, it indicates a continuation of the upward trend.<\/p>\n
Future projections suggest a gradual increase, aiming for the 155.40 to 156.50 range. The recent pivot low of 151.50 is expected to act as short-term support.<\/p>\n
Given the break above the multi-month descending trendline, we see a clear signal that the upward move in USD\/JPY is set to continue. This technical picture is strongly supported by the widening policy divergence between a hawkish Federal Reserve and an accommodative Bank of Japan. For the coming weeks, we should position for further dollar strength against the yen.<\/p>\n
This view is reinforced by recent US inflation data for October 2025, which came in at 3.4%, prompting Fed officials to reiterate their “higher for longer” stance into mid-2026. In contrast, Japan’s GDP contracted by 0.2% last quarter, making it highly unlikely the Bank of Japan will pursue any meaningful monetary tightening. This fundamental backdrop provides sustained fuel for the pair\u2019s rally.<\/p>\n
In response, we should consider buying call options with strike prices aiming for the 155.40 target. Expiries in December 2025 and January 2026 offer a good balance of time value and responsiveness to the expected move. The recent pivot low of 151.50 serves as a crucial short-term support level, which can be used as a reference for structuring trades or setting alerts.<\/p>\n
The derivatives market is already reflecting this sentiment, as one-month risk reversals show a notable 1.1% premium for USD\/JPY calls over puts. This indicates strong market demand for upside exposure. Selling out-of-the-money put spreads with strikes below the 150.00 level could be another strategy to collect premium while maintaining a bullish bias.<\/p>\n
We must, however, be mindful of history, remembering the multiple interventions by Japan’s Ministry of Finance as the pair approached the 160 level during 2024. While the fundamental case for a higher USD\/JPY is strong, the risk of sudden official action could cap gains or introduce sharp volatility. Using defined-risk structures like call spreads is a prudent way to target the 156.50 projection while protecting against such events.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" USD\/JPY breaks trendline near 149; eyes 155.40\u2013156.50 with 151.50 as short-term support level.<\/p>\n","protected":false},"author":62,"featured_media":17041,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-33853","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-ca\/wp-json\/wp\/v2\/posts\/33853","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=33853"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/33853\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/17041"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=33853"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=33853"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=33853"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}