USD/JPY Tests 159.47 as Weak Japanese Inflation Pressures YenUSD / JPYIBKR:USDJPYJohn_IsigeThe USD/JPY pair is moving higher this week, testing the 159.47 resistance level after the release of Bank of Japan minutes and weak inflation data. The yen remains under pressure as slowing inflation reduces expectations for further monetary tightening. ⸻ Japanese Inflation Weakens Further Recent inflation data showed continued slowdown: •CPI: 1.3% (down from 1.5%) •Core CPI: 1.6% (below 1.7% forecast) •Fourth consecutive monthly decline The figures fell below the 2.0% target, increasing risks of: •Weak domestic demand •Slower GDP growth •Deflationary pressure The Bank of Japan noted: •Lower electricity prices •Slower food inflation •Moderate wage growth Despite this, policymakers remain cautious, maintaining rates at 0.75%. ⸻ Policy Divergence Pressures Yen The wide interest rate gap between Japan and major economies continues to weaken the yen. The Bank of Japan emphasized: •Data-dependent decisions •No predefined tightening path •Awaiting stronger inflation signals This cautious stance supports USD/JPY upside. ⸻ US Dollar Recovers The US dollar rebounded after falling to 98.63 on the USD Index. Upcoming jobless claims data (14:30 GMT+2): •Forecast: 211K (vs 205K) •Weak labor data → USD above 99.20 •Strong data → test of 100.00 This may increase volatility in USD/JPY. ⸻ Technical Analysis The long-term trend remains bullish. •Resistance: 159.47 •Breakout target: 161.78, 164.07 •Correction support: 157.32 Medium-term trend: •Support zone: 157.08–156.81 •Upside target: 159.90 •Breakout target: 163.22–162.64 ⸻ Key Levels Resistance •159.47 •161.78 •164.07 Support •157.32 •153.76 •152.55 ⸻ Trading Scenarios Bullish Scenario Buy from 157.32 •Entry: 157.32 •Target: 159.47 •Stop-loss: 156.62 •Timeframe: 9–12 days ⸻ Bearish Scenario Sell below 156.62 •Entry: 156.60 •Target: 153.76 •Stop-loss: 158.00 ⸻ Outlook USD/JPY remains supported by policy divergence and weak Japanese inflation. •Break above 159.47 → bullish continuation •Break below 157.32 → corrective decline Overall bias remains bullish.