USDJPY is currently testing its weekly trendline, but recent data from Japan may challenge the possibility of a downward break.
Market turmoil has increased demand for long-term U.S. bonds, and the resulting drop in the
US10Y has kept the 
DXY under pressure, conditions that have supported Yen bulls. However, the latest wage data out of Japan may shift the short-term outlook just as the trendline is being tested.
Base full-time wage growth dropped to 1.9% year-over-year, down from 3%. This slowdown may give the Bank of Japan more justification to hold rates steady at its next meeting. If tariff-related panic subsides with any calming news from the White House, USDJPY could see renewed upside potential.
In the short term, two resistance levels are crucial: 146.50 and 147.50. The battle between bulls and bears is likely to play out between these resistance levels and the weekly trendline near 145.
Market turmoil has increased demand for long-term U.S. bonds, and the resulting drop in the
US10Y has kept the DXY under pressure, conditions that have supported Yen bulls. However, the latest wage data out of Japan may shift the short-term outlook just as the trendline is being tested.Base full-time wage growth dropped to 1.9% year-over-year, down from 3%. This slowdown may give the Bank of Japan more justification to hold rates steady at its next meeting. If tariff-related panic subsides with any calming news from the White House, USDJPY could see renewed upside potential.
In the short term, two resistance levels are crucial: 146.50 and 147.50. The battle between bulls and bears is likely to play out between these resistance levels and the weekly trendline near 145.
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The trendline is still holding.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.