**USD/JPY Resistance at 157.90** USD/JPY is facing resistance around 157.90. While we might see a short rebound, if this level isn’t broken, it could lead to a drop to about 154.40–152.80. The currency pair recently created a lower high near 157.90, compared to the previous peak of 158.85 in January. This is happening as it moves towards a steep upward trend line. If it cannot break the 157.90 level, the pullback may continue. If the decline goes on, the high of 154.40 from last month and the recent low of 152.80 may act as support. We are seeing a strong resistance for USD/JPY near 157.90. The pair is struggling to rise above this mark, indicating that its recent upward trend is slowing down. Failure to go higher could lead to a more significant pullback in the coming weeks. **US Economic Data Impact** This resistance level is supported by recent US economic data. The October 2025 inflation report showed core CPI falling to 2.9%, which is slightly below expectations and shows a cooling trend. As a result, the US 10-year Treasury yield has dropped to about 4.25%, reducing the rate gap that has typically favored the dollar. Additionally, the Bank of Japan has been using more decisive language about future policy changes. Many now believe that moving away from negative interest rates might happen in the first half of 2026. This shift has strengthened the yen and caused traders to be cautious about pushing the dollar much higher. For those trading derivatives, buying put options with strike prices around 156.00 or 155.50 could be a wise choice. This allows traders to profit if the price falls towards the 154.40–152.80 support zone. The limited risk of options contracts is particularly useful given the chance of a sudden price change. It’s important to remember the swift interventions by Japanese authorities when the pair hit similar highs in 2022 and 2024. The market recalls how quickly the Ministry of Finance can act, creating a mental barrier around the 160 level. This history suggests increased risks to the downside from these high levels. **Volatility Strategies for Traders** Traders might also look into strategies that benefit from rising volatility, as the pair is poised for potential large movements. A long straddle, which involves buying both a call and a put option, could profit from a breakout in either direction. This prepares for either a surprising rise above resistance or the more expected sharp pullback. Create your live VT Markets account and start trading now.

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