💡 Expert Analysis: USDJPY Shows Clear Sell Signal
Fundamental Outlook for USDJPY
Fundamental Analysis: The US dollar-Japanese yen (USDJPY) instrument is showing strength as easing trade tensions and politics undermine the safe-haven Japanese yen. The USDJPY pair has built on its weekly bullish gap-up opening and climbed to the 152.30 area during the first half of the European trading session, reversing a major part of Friday's sharp retracement slide from the highest level since February 13. Meanwhile, gold markets have been strong yet again during the previous week, but it looks as if the noise above the $4000 level will continue to be a major problem. This suggests that investors are shifting their focus towards riskier assets, which could benefit the US dollar and weigh on the Japanese yen. The recent rally in the USDJPY pair can be attributed to the improving US economic outlook and the Federal Reserve's hawkish stance on monetary policy. The US economy is showing signs of recovery, with strong employment data and robust consumer spending. The Fed has signaled that it may start tapering its asset purchases sooner than expected, which has boosted the US dollar. On the other hand, the Bank of Japan (BOJ) is maintaining its easy monetary policy, which is keeping the Japanese yen weak. Technical and Fundamental Insight: From a technical perspective, the USDJPY pair has broken above the key resistance level of 152.00, indicating further upside potential. The pair has formed a bullish engulfing pattern on the daily chart, which is a bullish reversal pattern. The relative strength index (RSI) is also showing positive divergence, indicating that the bullish momentum is increasing. The next major resistance level for the USDJPY pair is at 153.00, followed by 154.00. The improving US economic outlook and the Fed's hawkish stance on monetary policy are likely to support the US dollar in the near term. The BOJ's easy monetary policy and the safe-haven demand for the Japanese yen are likely to keep the Japanese yen weak. Therefore, the technical and fundamental outlook for the USDJPY pair is bullish. Traders who are looking to enter a long position in the USDJPY pair can consider the current trade signal: Entry = 152.220, TP = 149.500, SL = 153.290. This trade signal is based on the recent breakout above the key resistance level of 152.00 and the bullish reversal pattern on the daily chart. However, traders should be cautious of any sudden changes in the US economic outlook or monetary policy, as this could impact the US dollar and the USDJPY pair. In conclusion, the improving US economic outlook and the Fed's hawkish stance on monetary policy are likely to support the US dollar in the near term. The BOJ's easy monetary policy and the safe-haven demand for the Japanese yen are likely to keep the Japanese yen weak. Therefore, the technical and fundamental outlook for the USDJPY pair is bullish. Traders who are looking to enter a long position in the USDJPY pair can consider the current trade signal: Entry = 152.220, TP = 149.500, SL = 153.290. External Link: USD/JPY Disclaimer: This analysis is for educational purposes only and should not be taken as investment advice.Breakout Conditions & Technical Setup for USDJPY
On the 60-minute chart, USDJPY has closed two consecutive candles below the 100-period Simple Moving Average (SMA100) at 152.220. This is widely used by professional traders to confirm trend continuation after reversal.
This setup is ideal for intraday and swing traders looking for high-probability entries. The confluence of RSI, SMA100 breakout, and ATR compression increases the reliability of this signal.
✅USDJPY Trade Plan – Sell Entry Price & SL/TP
- Trade Symbol: USDJPY
- Trend Type: Bearish
- Entry:Sell @ 152.220 or Better Price
- Targeting: 149.500
- Risk (SL): 153.290
- Risk:0.5% of equity.Important! Keep it as low as
- Entry Timing: 2025.10.13 10:24
💹 Risk Management Tips for USDJPY Setup
- Only enter the trade when price reaches or improves upon the Entry Price.
- Apply a 1:1.5 risk-reward ratio for this USDJPY forecast if sl or tp missing to maximize profitability.
- Avoid entry during high-impact news releases related to USDJPY for better risk control.
- Do not risk more than 1% of account equity on this setup.
- Avoid entering during high-impact trading news related to USDJPY to reduce risk of sudden volatility.
- This This trading setup remains valid until either the Stop Loss or Take Profit is hit.
"Trading isn’t about perfection — it’s about probability."
Risk Warning: Trading USDJPY involves substantial risk. This content is not financial advice and is intended for informational use only.

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