USDJPY US Dollar/Japanese Yen

USDJPY NY Session Report - 2026-01-12

Session NY Session
Date January 12, 2026
Bias
🟒 Long
Confidence High

Session Snapshot

  • Open: 158.120
  • High: 158.340
  • Low: 157.880
  • Close: 158.003
  • MCM State: Accumulation (consolidation near highs)
  • Volume Context: High (NY session)
  • News Catalyst: DXY strength (+0.30%) supporting USD; BOJ policy unchanged, maintaining dovish stance vs Fed's higher-for-longer - rate differential widening

Fundamental Drivers

USDJPY supported by widening interest rate differential (Fed restrictive, BOJ ultra-dovish at near-zero rates). US 10-Year Note Auction (1 PM EST, High Impact) key - strong demand likely pushes yields higher, strengthening USD further vs JPY. Pair trading near 158.00 psychological level with bullish structure intact.

News Risk Assessment

  • Event Risk: Medium (US 10-Year Note Auction at 1 PM EST)
  • Impact: Yield rise = USD strength = upside for USDJPY
  • Action: Avoid entries 15 min before/after 1 PM EST

Supply/Demand Zones

Demand Zones

Zone Range Status Strength
D1 157.500-157.700 Fresh Strong
D2 156.800-157.000 Tested Moderate
D3 156.000-156.200 Fresh Strong

Supply Zones

Zone Range Status Strength
S1 158.500-158.700 Fresh Strong
S2 159.200-159.400 Tested Moderate
S3 160.000-160.200 Fresh Strong

Support/Resistance Matrix

Level Type Price Strength Distance
R3 Psychological 160.00 Strong +1.26%
R2 Structural 159.20 Strong +0.76%
R1 Supply Zone 158.50 Strong +0.31%
Current - 158.003 - -
S1 Intraday 157.88 Moderate -0.08%
S2 Psychological 157.50 Strong -0.32%
S3 Structural 156.80 Strong -0.76%

Liquidity Hunt Map

  • Buy-Stop Clusters: Above 158.50 (supply zone entry)
  • Sell-Stop Clusters: Below 157.50 (round number support)
  • Recent Sweeps: None - market consolidating
  • Next Target: Highly likely push to 158.50 then 159.00 if yields rise post-auction

Fear Factor Meter

FEAR [πŸ”΄πŸ”΄πŸŸ πŸŸ πŸŸ‘πŸŸ‘πŸŸ’πŸŸ’βšͺβšͺ] GREED
                    β–²
              Score: 7/10 β€” Risk On

Inputs: DXY=98.83 (+0.30%), VIX=14.48 (risk-on), Rate differential widening (Fed vs BOJ)

Directional Bias

  • Bias: Long
  • Confidence: High
  • Rationale: Fundamental support from widening rate differential (Fed restrictive, BOJ dovish). Price in accumulation above 157.50 demand. DXY strength + potential yield rise favors continuation to 159.00.

Action Zones

| Setup | Entry | Trigger | TP1 | TP2 | SL |
|-------|-------|---------|-----|-----|----||
| 🟒 Long | 157.500-157.700 | Bullish rejection at D1 | 158.20 | 158.70 | 157.30 |
| 🟒 Long | 157.880-158.000 | Breakout above 158.05 | 158.50 | 159.00 | 157.70 |
| πŸ”΄ Short | 158.500-158.700 | Bearish engulfing at S1 | 158.10 | 157.70 | 158.85 |

Momentum View

"Accumulation near 158.00 favors longs targeting 158.50-159.00 supply. IF US Auction strong β†’ probable yield spike driving USDJPY to 159.00+. Widening Fed-BOJ rate differential provides fundamental tailwind - structure suggests institutional accumulation ahead of next leg higher."