USDJPY Faces Critical Resistance at 155.00 as Traders Await Data

UPDATE: The USDJPY currency pair is currently testing a critical resistance level at 155.00 as traders brace for key economic data releases this week. Following a week of significant USD weakness, market participants are eagerly anticipating new catalysts to guide their next moves.

The dollar showed unexpected weakness last week, despite strong reports from ADP and ISM Services PMI. This downturn has raised questions about the sustainability of the current trend, with market pricing now indicating a 63% probability of a Federal Reserve cut as early as December. The upcoming NFP and CPI reports will be crucial in determining the Fed’s next steps, with analysts hoping for data before the next FOMC meeting.

On the Japanese side, the JPY has been under pressure since the last BoJ policy announcement, where interest rates were held steady amid some dissent within the board. Governor Ueda’s comments regarding spring wage negotiations suggest potential delays for future rate hikes, possibly pushing decisions to January or even March 2026.

Last week saw verbal interventions from the Japanese Finance Minister near the 155.00 handle, indicating that officials are keen to stabilize the currency at this level. While these interventions typically provide temporary relief, they highlight the significance of the 155.00 threshold as a defensive line for Japanese authorities.

On the daily charts, USDJPY briefly dipped below the 153.27 mark but recovered, remaining range-bound under 155.00. This cautious price action suggests traders are in wait-and-see mode as they look for fresh signals. The recent breach below an upward trendline was deemed a false breakout, maintaining uncertainty in the market.

Hour-by-hour analysis reveals a downward trendline acting as resistance, with sellers entering the market at defined risk levels. Buyers are now hoping for a breakout above this trendline to shift momentum toward new highs. The red lines on the chart represent the average daily price range, indicating potential volatility ahead.

With minimal economic data scheduled for release this week, including the weekly US ADP report tomorrow, traders will need to keep a close eye on developments to navigate this uncertain landscape. The USDJPY is at a pivotal point, where decisions made in the coming days could have significant implications for both currencies.

Stay tuned for further updates as this story develops. Analysts and traders alike will be watching closely as the markets react to incoming data and statements from economic leaders.