USDJPY breakout supported at 155.60

Dec 10, 2025

The USDJPY remains in a bullish trend, with recent price action showing signs of a corrective pullback within the broader uptrend.

Support Zone: 155.60 – a key level from previous consolidation. Price is currently testing or approaching this level.

A bullish rebound from 155.60 would confirm ongoing upside momentum, with potential targets at:

158.00 – initial resistance

159.00 – psychological and structural level

159.70 – extended resistance on the longer-term chart

Bearish Scenario:
A confirmed break and daily close below 155.60 would weaken the bullish outlook and suggest deeper downside risk toward:

155.00 – minor support

154.60 – stronger support and potential demand zone

Outlook:
Bullish bias remains intact while the USDJPY holds above 155.60. A sustained break below this level could shift momentum to the downside in the short term.

This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.

Dec 11, 2025

Trade active

Price is retesting the 155.60 support level, where an oversold bounce could help the prevailing uptrend resume. If buyers hold this zone, the next upside objectives sit at the December 9th swing high near 156.90, followed by 157.13.

However, if price breaks and closes below 155.60, that would weaken the bullish outlook and open the door for a move toward the next support at 154.93, and potentially the 154.40–154.53 area.

Dec 19, 2025

Trade closed: target reached

Price action reaching previous swing high at 156.90. The Bank of Japan’s 25bp hike to 0.75%—and its signal that further increases are likely—supports a stronger yen against the US dollar.

Narrowing rate differential: Higher Japanese rates reduce the wide yield gap with the US, making JPY-denominated assets more attractive and lessening incentives to fund carry trades in yen.

Carry trade unwind: Expectations of additional BoJ tightening encourage investors to reduce short-JPY positions, adding upward pressure on the currency.

Policy divergence matters: If the Fed is cutting or nearing cuts while the BoJ tightens, USD/JPY faces downside risk (yen appreciation).

Caveats: The yen’s gains may be tempered if US yields remain high, global risk sentiment favors the dollar, or if markets doubt the pace/extent of BoJ follow-through.

Bottom line: The move is JPY-positive vs USD, with the magnitude depending on how quickly the BoJ tightens relative to the Fed’s policy path.