Hello, traders! Today we’re back with a USDJPY trading signal based on the Smart Money Concept. Let’s dive straight into the analysis!
USDJPY Technical and Fundamental Analysis| Smart Money Review
The USDJPY pair is gaining significant attention in the forex world, especially among smart money traders. The current market structure shows clear signs of institutional accumulation and bullish continuation. Let’s dive into the technical and fundamental reasoning behind this trade idea.
📈 USDJPY Technical Outlook: Golden Cross + FVG Reaction
One of the most notable signals on the chart is the Golden Cross — when the 50-period moving average crosses above the 200-period moving average, it suggests a major shift in momentum. This pattern is considered a powerful bullish indicator and often precedes extended upside moves.
Additionally, the chart shows that the price has retested a Fair Value Gap (FVG) — a price imbalance left by institutional buying — and respected it strongly. After tapping into the FVG zone (around 146.00–147.50), USDJPY began to climb again, which signals that institutional buyers are likely stepping back in.
The pair has already broken through the 161.8% Fibonacci extension and is now heading toward the 261.8% level, which aligns perfectly with buy-side liquidity resting at the 151.20 level. This level is our target.
🌍 Fundamental Backdrop: Yen Weakness in Focus
On the fundamental side, things are favoring the bulls. According to a former Bank of Japan (BOJ) official and the current chief Japan economist at UBS Securities, there’s a real possibility that the BOJ may shift toward a rate cut by the end of the year. Such dovish speculation typically drives the Japanese yen lower, especially when contrasted against a still-strong US dollar.
With the US economy showing resilience, and interest rate cuts from the Fed remaining uncertain, the dollar remains supported. This macro environment further supports long positions on USDJPY.
📌 USDJPY Trade Setup
- ✅ Buy USDJPY
- 📍 Entry Zone: After bullish confirmation above FVG
- 🎯 Target: 151.20 (261.8% Fib level and buy-side liquidity zone)
- ❗ Suggested SL: Below 145.00
💬 What do you think about this setup?
🔥 Smash ❤️ if you’re bullish on USDJPY this week!
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