[January 22] Markets may take wait-and-see approach amid caution over Trump's comments and Bank of Japan decision

2025.01.22 NEW [January 22] Markets may take wait-and-see approach amid caution over Trump's comments and Bank of Japan decision

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Recap of previous trading day (January 21)

Yesterday the USDJPY hit a high of 156.23 shortly after GMT 00:30, before declining. Following reports of Trump's tariff comments, risk-averse yen buying occurred, leading to a low of 154.77 shortly after GMT 03:00.

Later, while it exceeded 156 after GMT 11:00, the price failed to extend gains further, and trading for the day closed at 155.45.

Recap of the Tokyo market and outlook going forward

Today the USDJPY touched a low of 155.35 shortly after GMT 01:30 and is now moving upward toward 156.

While the Bank of Japan's monetary policy meeting this week is likely to implement additional rate hikes, market reaction has been limited.

Looking at the 1-hour chart of the USDJPY (as of GMT 03:40 on January 22), the middle line shows gentle movement, indicating a trendless state. It would be advisable to follow the direction once it breaks either the range ceiling of 156.58 or the range floor of 154.77.