This Week's Market Strategy - January 20, 2026 (Tue)
A snap general election has been decided.
At present, due to expectations that the Liberal Democratic Party will secure a majority due to popular support for Chairman Takaichi, it is thought that fiscal expansion plans may proceed smoothly,
and at the same time, rising concerns about fiscal deterioration mean that the market recognizes the USD/JPY trend of the yen being sold off remains unchanged.
However, the yen has strengthened from just below 160, so is the 160 level really a strong resistance?
This week there is a Bank of Japan monetary policy decision meeting, but before that, what we are focusing on is what kind of speech President Trump will give at the Davos Conference.
It looks like the market this year will experience ups and downs based on President Trump's movements.
Support for USD/JPY is 157.50, resistance is the previous high of 159.46, but if it is contained at 158.50, it appears a narrow range will form.
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