Important events today:

07.11 16:00 UTC: USD – University of Michigan Consumer Sentiment Index

The dollar/yen pair is consolidating after a rapid rise toward 154: some investors are taking profit amid increased demand for safe-haven assets and verbal signals from Japanese authorities regarding the undesirability of excessive volatility. Rising caution in equity markets also supports the yen through the “safe-haven” channel, which limits further weakening of the Japanese currency.

At the same time, the overall fundamental background for the pair remains mixed: the yield differential is still in favor of the U.S., but the pace of widening has slowed, and market expectations for future Fed steps have softened as labor market components have shown less strength. Any hints of Tokyo’s readiness to strengthen measures against excessive yen depreciation increase the market’s sensitivity to downward corrections in USDJPY.

In practice, this creates conditions for tactical selling on rallies: with continued nervousness and possible intervention-related comments from Japan’s Ministry of Finance, the short-term bias shifts downward. As of November 7, the pair is trading around 153.10–153.30; pullbacks toward 152.50–152.00 look likely if U.S. yields weaken and demand for safe-haven assets remains stable.

Recommendations: SELL 153.25, SL 153.55, TP 152.45