This Week's Market Strategy - January 13, 2026 (Wed)
USD/JPY has continued to see strong buying from overseas investors, and with Prime Minister Takagi set to announce the intent for a snap dissolution election on the 23rd, speculation about aggressive fiscal policy has pushed the pair above 159 yen.
Today's US economic indicators will focus on November US Retail Sales (forecast: +0.5% month-on-month / +0.4% month-on-month excluding automobiles).
From a technical perspective on USD/JPY, the downside target appears to be the key level of 159.00 yen, while the upside target is likely to be around the key level of 160.00 yen.
Based on the base scenario, the image is that yen weakness will not stop, but if support at 159.00 breaks, there is likely to be a pullback to the next lower level.
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