USD/JPY outlook for Monday, 22nd Sep, 2025

From Fed and FOMC the last week:

• Unemployment downplayed by "less hiring and less firing"

• Focus shifted on inflation

• Therefore, USD turned bullish despite initial temporary downward spike.

Conclusion: USD remains bullish.

The Bank of Japan (BOJ) will maintain <0.5% because of

• uncertainty of tariffs

• domestic political issues

Conclusion: JPY remains bearish

Trading plan:

• Open a position as soon as market opens.

• Wait for downward correction, then open 2nd trading position at the next bullish price action observed on smaller timeframes like 15M/30M. Candle patterns can be observed on these timeframes to determine continuation of bulls after downward correction.

Support @ 147.75, a closing of H1 candle below will confirm a bearish swing and a bigger correction. So, it will be better to exit buy trading positions and look for the next bullish price action in the aforementioned way.