Trading Insights

USD/JPY

Policy Divergence Persists Despite BoJ Suppression

USD/JPY remains cautiously bearish in the near term, trading sideways amid apparent intervention and liquidity operations by the Bank of Japan. Despite these measures, the structural divergence between the US and Japanese economies remains unresolved.

Japan’s plans to monetize USD reserves may provide temporary relief to debt dynamics, but sustained US growth would likely keep the currency pair supported. Political pressure from President Trump for a weaker USD to support exports adds another layer of complexity.

Key Levels: Support 154.616 | Resistance 158.232

Investor Takeaway: RSI below its MA and trending lower, with flat MACD buying pressure, signals controlled consolidation rather than trend reversal.

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