USD/JPY Gain Ground As Yen Weaken Across The Board

Fundamental Analysis

* Yen Meltdown: The Japanese yen has weakened against the dollar, retreating from a two-month high following disappointing economic data from Japan and concerns over potential U.S. tariffs. On the data front, the Ministry of Finance reported that Japan’s Current Account balance stood at 1,077.3 billion yen, a sharp decline from November’s 3,352.5 billion yen. Additionally, fears that Japan could become a target of U.S. trade tariffs further pressured the yen. Speaking to reporters aboard Air Force One on Sunday, President Trump announced plans to impose a 25% tariff on all steel and aluminum imports, though he did not specify which countries would be affected. He also stated that additional reciprocal tariffs, matching each country’s existing rates, would be announced midweek and swiftly implemented, according to Reuters.

Technical Analysis

*Technical Breakout: USDJPY was traded higher while currently testing near the resistance level 153.650. MACD which illustrate bullish bias signal suggest the pair to likely extend its gains after it breaks above the level.

* Resistance and Support: If the bullish momentum persists, there’s a strong likelihood that the price will potentially head towards the level 155.550 after it breach above the level 153.650. Conversely, a potential reversal is also to be expected and the price could head back towards 151.750.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

Looking ahead, traders will turn their attention to key U.S. inflation indicators, including CPI, PPI, and Retail Sales. Additionally, the market will keep a close watch on Trump’s policy agenda and its potential effects on the global economy.

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Monitoring

Stay updated on US and Japan data, global market updates, central bank updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

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Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.