Market Strategy for This Week - July 1, 2025
The Nikkei 225 has entered the 40,000 yen level again.
USD/JPY is experiencing yen strength as the Bank of Japan's June Tankan (Short-Term Economic Survey of Enterprises) came in better than market expectations.
From a technical perspective, there is a 78.6% Fibonacci retracement at 143.40 against the rally from May 27 to June 23.
The 78.6% retracement level is also holding against the correction to the April 22 to May 12 rally, and similarly the 78.6% retracement level appears to be holding against the rise following the May 12 to May 27 decline.
Therefore, the 143.40 support line seems to be a key level of focus.
Conversely, if this line is broken below, the pair is likely to move lower.
This Thursday is the US Nonfarm Payrolls report (moved forward from Friday due to Independence Day). We will be closely watching whether the support holds or breaks before this important data release.
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