The USDJPY currency pair keeps trading downward due to higher chances of monetary policy easing by the US Federal Reserve (Fed) and a stronger outlook for the Japanese yen. However, there might be a few technical obstacles. The first one is the 150.000 level. Then a rebound to 152.000 from this round level could be expected. Such psychological thresholds typically draw a lot of trader attention and act as strong support and resistance, as a large volume of limit orders tends to accumulate around them. Foreseeing this rebound, a buy position could be considered, but it should be noted that this would be a counter-trend trade, which carries higher risks. From a fundamental perspective, the Japanese yen remains vulnerable to unexpected declines amid political uncertainty due to the formation of a new Japanese government. Given this context, monetary policy in the country could shift towards easing, which would support USDJPY in the short term. The buy signal will be additionally confirmed if trading volumes increase dramatically as the price approaches the 150.000 level, suggesting an impending reversal.
The overall recommendation is to buy USDJPY if the pair reaches 150.000 and trading volume rises substantially. Profits should be taken at 152.000. Stop Loss could be set at 148.700.
Calculate your open position so that a potential loss (protected by a Stop Loss order) is limited to 1% of your deposit. If your account balance does not allow entering a position of this size, it is better to skip the trade and wait for other market signals that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
