USD/JPY rebounded to the 155 level, with the market focusing on the outlook for Japan's CPI and BOJ policy.
2026-02-19 11:27:30
USD/JPY rose to the 155.00 level in Asian trading on Thursday, continuing the previous strong performance of the US dollar.
The minutes of the Federal Reserve's January meeting showed that officials were divided on the future direction of interest rates, with most saying that if inflation remained high, rate hikes might still be on the agenda, and they hoped the statement would more clearly reflect the "two-way possibility" of policy.
These hawkish signals supported a stronger dollar and put pressure on the yen. In Japan, Prime Minister Sanae Takaichi's victory in this month's general election has fueled market expectations for expansionary fiscal policies, including a possible two-year exemption from food sales tax.
The International Monetary Fund (IMF) warned Japan to maintain fiscal stability and to implement tax cuts cautiously. The market widely expects the Bank of Japan to raise interest rates in April, and a March rate hike is also possible if economic data is strong.
In the short term, Japanese CPI data, wage negotiations, and inflation trends will be key factors driving the yen's exchange rate. In addition, US economic data and geopolitical risks will continue to provide support or pressure on the US dollar.
The daily chart shows that USD/JPY has rebounded from a low of 153, forming a strong bullish candlestick, and is currently facing resistance at around 155.30 from the 50-day EMA. The 200-day EMA, located below 152.60, serves as medium- to long-term support.
The Stochastic Oscillator has rebounded from oversold territory, indicating weakening downward momentum and a potential continuation of the short-term rebound. A break above 155.30 could lead to further testing of 156.00 and the consolidation range from mid-January.
If the price falls back after encountering resistance, support levels to watch are 153.00 and the year's low of 152.10. The 4-hour chart shows active short-term buying, but trading volume is relatively moderate. USD/JPY may maintain range-bound trading until the release of key data, and a breakout will indicate the subsequent direction.
Editor's Note:
USD/JPY is slightly bullish in the short term, with the US dollar supported by hawkish signals from the Federal Reserve, while the Japanese yen is pressured by expectations of fiscal policy and the inflation outlook. Watch the resistance zone of 155.30 and the support zone of 153.00; remain cautious ahead of data releases.
The minutes of the Federal Reserve's January meeting showed that officials were divided on the future direction of interest rates, with most saying that if inflation remained high, rate hikes might still be on the agenda, and they hoped the statement would more clearly reflect the "two-way possibility" of policy.
These hawkish signals supported a stronger dollar and put pressure on the yen. In Japan, Prime Minister Sanae Takaichi's victory in this month's general election has fueled market expectations for expansionary fiscal policies, including a possible two-year exemption from food sales tax.
The International Monetary Fund (IMF) warned Japan to maintain fiscal stability and to implement tax cuts cautiously. The market widely expects the Bank of Japan to raise interest rates in April, and a March rate hike is also possible if economic data is strong.
In the short term, Japanese CPI data, wage negotiations, and inflation trends will be key factors driving the yen's exchange rate. In addition, US economic data and geopolitical risks will continue to provide support or pressure on the US dollar.
The daily chart shows that USD/JPY has rebounded from a low of 153, forming a strong bullish candlestick, and is currently facing resistance at around 155.30 from the 50-day EMA. The 200-day EMA, located below 152.60, serves as medium- to long-term support.
The Stochastic Oscillator has rebounded from oversold territory, indicating weakening downward momentum and a potential continuation of the short-term rebound. A break above 155.30 could lead to further testing of 156.00 and the consolidation range from mid-January.
If the price falls back after encountering resistance, support levels to watch are 153.00 and the year's low of 152.10. The 4-hour chart shows active short-term buying, but trading volume is relatively moderate. USD/JPY may maintain range-bound trading until the release of key data, and a breakout will indicate the subsequent direction.
Editor's Note:
USD/JPY is slightly bullish in the short term, with the US dollar supported by hawkish signals from the Federal Reserve, while the Japanese yen is pressured by expectations of fiscal policy and the inflation outlook. Watch the resistance zone of 155.30 and the support zone of 153.00; remain cautious ahead of data releases.
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