USDJPY Insight

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Key Points:
- The Washington Post reported, citing anonymous sources, that Trump’s aides are reviewing a universal tariff plan targeting imports critical to U.S. national and economic security. However, Trump denied the report on Truth Social, criticizing the Washington Post.
- Lisa Cook, a Federal Reserve Governor, stated that since September, the U.S. labor market has shown some resilience, but inflation remains stickier than expected. She suggested it would be reasonable to lower interest rates more gradually this year.
- The market has begun speculating that Trump might abandon the universal tariff policy in favor of selective tariffs once in office.

Key Economic Events This Week:
+ January 7: Eurozone December Consumer Price Index, U.S. December ISM Non-Manufacturing PMI, U.S. November JOLTS Job Openings
+ January 8: U.S. December ADP Nonfarm Employment Change, FOMC Meeting Minutes
+ January 10: U.S. December Nonfarm Payrolls, Unemployment Rate

USD/JPY Chart Analysis:
The 158 level, which had been acting as a strong resistance zone, has recently been breached. This significantly increases the likelihood of further upward movement for USD/JPY. Based on the current chart, the pair is expected to form a peak in the 161-162 range. If there are no major variables, it is anticipated to retreat to around the 157 level after reaching the peak.

If the trend unexpectedly reverses to the downside, we will quickly revise our strategy.

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