USDJPY US Dollar/Japanese Yen

USDJPY London Session Report - 2026-01-10

Session London Session
Date January 10, 2026
Bias
🟢 Long
Confidence High

Session Snapshot

  • Current Price: 157.918
  • 24h Change: +0.68%
  • 1-Week Performance: +0.68%
  • 1-Month Performance: +1.23%
  • SSO State: Markup (trending up with strong buy signals)
  • Volume Context: Moderate (London Session)
  • News Catalyst: Interest rate differential (Fed-BOJ) widening; technical "strong buy" across timeframes

Fundamental Drivers

USDJPY driven by interest rate differential between Fed and BOJ. Fed holding rates elevated (US10Y 4.17%) while BOJ maintains ultra-loose policy. JPY weakness structural—BOJ reluctant to hike despite inflation. One of most traded pairs globally; highly sensitive to risk sentiment (VIX 14.48 = risk-on favoring USD). DXY at 99.13 but USDJPY rallying = JPY weakness dominant theme.

News Risk Assessment

  • Event Risk: Low (no Fed or BOJ events today)
  • Impact: Trend continuation favored; watch for surprise BOJ intervention chatter
  • Action: Normal trading; avoid overleveraging at extension highs

Supply/Demand Zones

Demand Zones

Zone Range Status Strength
D1 156.50-157.00 Fresh Strong
D2 155.00-155.50 Tested Moderate
D3 153.50-154.00 Fresh Strong

Supply Zones

Zone Range Status Strength
S1 159.00-159.50 Fresh Moderate
S2 160.50-161.00 Fresh Strong
S3 162.00-162.50 Fresh Moderate

Support/Resistance Matrix

Level Type Price Strength Distance
R3 Psychological 160.00 Strong +1.3%
R2 Extension 159.00 Moderate +0.7%
R1 Structural 158.50 Moderate +0.4%
Current - 157.92 - -
S1 Structural 157.00 Strong -0.6%
S2 Psychological 156.00 Strong -1.2%
S3 Swing Low 155.00 Strong -1.8%

Liquidity Hunt Map

  • Buy-Stop Clusters: Above 159.00 and 160.00 (round number magnets)
  • Sell-Stop Clusters: Below 156.00 (psychological support)
  • Recent Sweeps: None visible; clean uptrend
  • Next Target: Hunt to 159.00-159.50 supply, potential liquidity grab to 160.00+

Fear Factor Meter

    FEAR [🟢🟢🟢🟢🟢🟢🟢⚪⚪⚪] GREED
                        ▲
                  Score: 7/10 — Risk On

Inputs: Technical=Strong Buy all timeframes, Rate differential=Bullish, VIX=14.48 (risk-on)

Directional Bias

  • Bias: Long
  • Confidence: High
  • Rationale: Strong buy signals daily/weekly/monthly. Interest rate differential structural tailwind. JPY weakness accelerating. Momentum favors continuation to 159.00+ supply zones.

Action Zones

| Setup | Entry | Trigger | TP1 | TP2 | SL |
|-------|-------|---------|-----|-----|----||
| 🟢 Long | 156.50-157.00 | Bullish rejection at D1 | 158.50 | 159.50 | 156.00 |
| 🟢 Long | 157.50-158.00 | Breakout continuation | 159.00 | 160.00 | 157.00 |
| 🔴 Short | 159.00-159.50 | Bearish engulfing at S1 | 158.00 | 157.00 | 159.75 |

Momentum View

"Markup phase with structural tailwind (Fed-BOJ rate differential). IF holds 157.00, expect push to 159.00-160.00. ONLY risk: surprise BOJ intervention (low probability given policy stance). London Session: BUY DIPS to 156.50-157.00 demand zone."


When momentum aligns, we move.