The USDJPY pair is trending upwards, influenced by slow progress in the US-Japan trade talks. The US dollar (USD) has strong support, thanks to a better-than-expected Non-Farm Payroll (NFP) report that has altered interest rate predictions. However, the growth of the USD is limited due to weaker wage growth. On the other hand, the Japanese yen (JPY) is under pressure from low wage growth and difficult trade negotiations with the US. The Bank of Japan is closely monitoring the outcomes of these negotiations before making any changes to interest rates. Bad trade news decreases the chances of a rate hike by the end of the year. On the daily chart, USDJPY is approaching the 148.28 resistance level. Here, sellers may step in, which could lead to a drop toward the 142.35 support level. Buyers, however, are looking for a breakout to reach 151.19. The 4-hour chart shows a bullish trendline. Buyers are counting on this momentum to push prices higher, while sellers are waiting for a break below the trendline to aim for the 144.35 range. In the 1-hour chart, there is resistance at 146.50. Sellers want to break the trendline from this point, while buyers hope to move beyond it to reach 148.28. Today, new US Jobless Claims data will be released, which may further influence market trends. So far, the dollar-yen pair has been moving higher, supported by stronger-than-expected employment data from the US. Payroll growth exceeded forecasts, raising expectations for borrowing costs. However, the wage figures were softer, tempering extreme optimism. The USD’s rise has been cautious rather than aggressive. In Japan, the yen lacks support. Slow wage growth continues to be disappointing, and trade talks between Washington and Tokyo are not making significant progress. The Bank of Japan is focused on trade policy changes, and negative news reduces the likelihood of a near-term rate increase. With limited inflationary pressure, the Japanese yen faces ongoing challenges. Looking at the technical side, price action is nearing a key resistance level at 148.28 on the daily chart. This is where sellers may begin to act more decisively, possibly driving prices back to 142.35. If the price breaks through, it could rise toward 151.19, a level that has historically capped increases, indicating that a breakout there would be significant. On the 4-hour chart, upward momentum is still present, supported by a visible trendline that buyers are using to push prices higher. Sellers are watching for breaks below this line, targeting around the mid-144 area. On the 1-hour chart, the resistance level around 146.50 remains important. Sellers might decide to act here, especially if the pair struggles at this level. Should buyers maintain strong demand and break through, particularly if new employment data supports a stable job market, a move toward 148.28 is likely. However, any failure to stay above 146.50 could lead to complications for eager buyers. With new weekly claims data coming out today, we should expect price movements to stabilize until the market absorbs the report. If unemployment claims remain low, it could indicate strength in the US job market, reinforcing current interest rate expectations. Conversely, an unexpected rise in claims could create uncertainty, resulting in increased volatility. Charts will provide clear entry and exit points. Monitoring reactions at key levels will be crucial. Often, it’s not the initial response but the follow-up after data and technical levels are tested that reveals the true market direction.

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