VT 
USD/JPY is consolidating near 148.00 as traders weigh the dovish tilt from the US Fed against the historic shift toward tightening from the Bank of Japan (BoJ).
The Fed has taken a dovish turn, with markets pricing in a high probability of a December rate cut, marking a dramatic shift from earlier expectations. This has eroded the yield advantage of the US dollar, leaving traders cautious about further upside.
In contrast, the BoJ is preparing for its first rate hike since 1995, driven by inflation above 2.8% and wage growth exceeding 4%. This historic move signals a departure from decades of ultra-loose policy and has buoyed the yen, adding pressure to bullish structure of USD/JPY.
The clash of these two policy paths makes December one of the most pivotal months for the pair in years.
USDJPY Technical Analysis and Trade Strategy
- Support Zone: 147.00–147.50, followed by 145.80 and 144.50
- Resistance Zone: 149.20–149.50 acting as the breakout trigger
- Bullish Setup: Long above 149.20 with strong volume. Targets 150.70 and 152.00. Use stop-loss below 147.50.
- Bearish Setup: Short if price breaks below 147.00. Targets 145.80 and 144.50. Use stop-loss above 148.50.
- Range Play: Trade between 147.00–149.20 if price remains sideways. Buy near support, sell near resistance with tight stops.
Looking Ahead: The Inflection Point in December 2025
USD/JPY is at a critical juncture, with technical levels aligning with fundamental catalysts. A breakout above 149.50 would confirm bullish continuation, but the looming Fed cut and BoJ hike could tilt momentum toward the yen. Traders should brace for heightened volatility and prepare for decisive moves.
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