Good morning. The Japanese yen is the third most traded currency in the world, after the U.S. dollar and the euro. And when global markets panic, traders rush to buy it, making the USD/JPY a classic risk barometer.

It’s not just a currency pair, it’s the market’s heartbeat when fear hits the charts.

-Shaun A, Jonathan Kibbler, Jordon Mellor

MARKETS

Prices supplied by Google Finance as of 4:00am ET - stock prices as of close. Here is what the prices mean.

NEWS

You can feel it, that quiet confidence coming out of Tokyo again.

While most traders are still glued to U.S. inflation chatter and Fed cuts, the Bank of Japan just reminded the world they’re still in the game.

On Friday, Deputy Governor Shinichi Uchida told a room full of Japanese credit unions that if growth and prices move as expected, the BOJ will keep raising rates.

The BOJ’s tone has come a long way from “infinite easing” days.

They already ended their decade-long stimulus and nudged rates to 0.5% back in January.

Since then, inflation’s held above 2% for three straight years, something Japan hasn’t seen in decades.

But Uchida was careful. He knows the country’s inflation story is fragile. Prices are rising, sure but mostly because of import costs and tariffs, not booming wages. And that’s why Tokyo’s walking a fine line: push too hard, and they risk choking growth; move too slow, and the yen keeps bleeding.

He summed it up perfectly: “We’ll judge without preconception.”

In trader terms? They’ll keep hiking if the data lets them but they’re not forcing it.

The BOJ’s balancing act just got trickier after Sanae Takaichi’s victory in the LDP leadership race, a fiscal dove who prefers to keep things steady.

That political win cooled expectations for an October hike, but the market still sees 0.75% by January as fair game.

And that’s why USD/JPY keeps dancing near its highs.

Every BOJ comment gets priced in, faded, and repriced again. It’s the same rhythm every yen trader knows a slow drumbeat that always ends in volatility.

Japan’s not the wild card anymore it’s the slow mover that can catch traders sleeping.

While everyone’s staring at Powell and Trump, Tokyo’s quietly building momentum.

If the BOJ follows through with another hike, that comfy yen short trade could flip fast.

And if you’re holding USD/JPY long thinking “Japan never hikes”?

Well, this might be our early warning.

-Shaun A

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TRADER INSIGHTS

Today I will be going back to my roots a little. As a former EUR futures day trader I can hopefully pass on some useful information.

I had a question on my linkedin the other day and thought it would make an interesting read. 

I was asked:

The problem here is over leveraging and not having a risk limit on the day.

Being up 2% and the market turning on you happens, but we can control what we do next.

The key here is to have a plan when managing risk in a high emotional environment. 

Scalping and day trading plays with your emotions. 

Here’s the golden rule I wish someone had told me earlier:

Only use your trading profits as risk once you’re up for the day.

If you’re up 1–2%, that’s your permission to trade more but only with those profits.
You’re no longer risking your capital, you’re risking the market’s money.

It’s a small mental shift, but it’s massive for consistency.

You’ll stop over-trading and you’ll protect your base.

Some rules I made:

If you’re serious about becoming consistent, make this your rulebook:

Because in trading, longevity beats intensity.

-Jonathan Kibbler

WATCH

CHART BREAKDOWN OF THE DAY (USD/JPY)

DAILY TRADING PSYCHOLOGY NUGGET

TODAY’S MOST TRENDING MARKET NEWS (OCTOBER 17, 2025)

Global stock markets dropped sharply as fears over U.S. regional bank stability triggered a fresh wave of risk aversion. Financial shares led the rout after banks such as Zions and Western Alliance reported significant loan losses, sparking concerns over credit contagion. At the same time, gold surged to record highs as investors sought safe havens. (source:theguardian)

GAMES

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ANSWER

Answer: Bear Market