2025-11-05 05:30:00
USD/JPY looks like it might be ready to extend a month-long trend after hitting a key inflection point!
Think the dollar will see more gains in the next trading sessions?
We’re taking a closer look at the 4-hour time frame!
Recent comments from key Fed members sounded less dovish than traders had expected, prompting markets to reassess the chances of a December rate cut. The shift in expectations gave the U.S. dollar a fresh boost as traders moved back into the greenback.
The yen is not sitting on the sidelines either. Safe-haven demand is increasing due to rising tariff concerns, slowing global growth, and the ongoing U.S. government shutdown.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S. dollar and the Japanese yen, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
USD JPY pulled back from the 154.50 area and dropped about 100 pips, bringing the pair toward the 153.50 zone.
As you can see, the current price is sitting on a cluster of technical support: it was a major resistance area in October, it matches the 50% Fibonacci retracement of last week’s upswing, it overlaps the Pivot Point level, AND it lines up with the trend line support that has held since early October.
When multiple signals point to the same zone, traders tend to pay attention.
If buyers defend this area and we start to see steady green candlesticks, the pair could continue its month-long uptrend. That keeps the path open toward the 154.50 highs again, and possibly toward R1 Pivot Point at 155.12 or even the 155.00 area of interest.
But if sellers push price below the trend line and hold it there, the trend could flip. Losing that support would weaken the uptrend and could pull USD/JPY down toward the 152.50 area near the 100 SMA or the 151.50 previous swing low.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
