USDJPY Insight

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Key Points
- Japan's special Diet session has reappointed Shigeru Ishiba as Prime Minister, keeping political uncertainty in place.
- According to the minutes from the October BOJ Monetary Policy Meeting, the Bank of Japan indicated a cautious stance on rate hikes for the time being, citing the rise in U.S. long-term interest rates as an external risk.
- The increased number of Republican seats in the U.S. House raises the likelihood of a "Red Wave" becoming a reality.
- Concerns persist that the Trump administration may impose substantial tariffs on neighboring trading partners.

Key Economic Indicators
- November 12: Germany October CPI
- November 13: U.S. October CPI
- November 14: U.S. October PPI
- November 15: Fed Chair Powell’s speech, Japan Q3 GDP, U.K. Q3 GDP, U.S. October Retail Sales

USD/JPY Chart Analysis
As the "Trump trade" trend continues, the U.S. dollar remains strong, pushing USD/JPY upward as well. Having already breached the 152 level, there is a significant possibility it could rise further to the 158 level. If the 158 level is broken, additional gains could extend to 162. However, if resistance is met at 158, a pullback to around the 149 level can be expected.

If the trend diverges from expectations, we will promptly adjust our strategy.

Disclaimer

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