The interest rate differential continues to be a mainstay of this pair, as we are levitating into the weekend, looking bullish overall.
The most active trading sessions for the USD/JPY take place in Tokyo, London and New York. Day traders look mostly to the London and New York sessions but those trading wishing to trade on the Asian markets can do so between 2400 GMT - 0900 GMT.
USD/JPY has traditionally been the most politically sensitive currency pair, with successive U.S. governments using the exchange rate as a lever in trade negotiations with Japan. For day-to-day trading, the most significant feature of USD/JPY is the heavy influence exerted by Japanese institutional investors and asset managers.
The USD/JPY has recently dipped below 101.00. Read the Daily Forex USD to Japanese Yen forecast and get access to the most up-to-date statistics, analyses and economic events regarding the USD/JPY.
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Despite short-term exhaustion, USD/JPY remains in a strong uptrend, with interest rate differentials favoring buyers on pullbacks toward key support zones.
I look at this market as one that could offer opportunities on dips, but it will also be very noisy and rocky to say the least.
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The US dollar continues to see a lot of noise, as traders have recently tried to push the Federal Reserve into perceived rate cuts coming quickly. This is something the trading community has been wrong about for some side.
The USD/JPY pair is testing crucial support at the 200-day EMA near 152, with signs of stabilization suggesting a potential rebound from oversold conditions.
The US dollar gapped lower against the Japanese yen, continuing the selling pressure that started on Friday, as traders continue to look to the overall “sell America trade”, and the potential “rate check” coming from the Fed on Friday.
What this means to me is that every pullback probably ends up being a buying opportunity.
The US dollar rallied against the Japanese yen ahead of Friday's BoJ meeting, with traders watching for dovish signals that could spark a move to 160.
The USD/JPY pair remains volatile near 158 ahead of the Bank of Japan's rate decision, with interest rate differentials and bond market stress in focus.
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USD/JPY experienced major volatility on Tuesday amid rising Japanese bond yields, but strong carry trade dynamics continue to favor the US dollar.
The US dollar recovered against the yen on Monday as risk sentiment stabilized, with buyers returning near 158 and eyes turning to a potential move toward 160.
USD/JPY pulled back on Wednesday toward the key 158 support level, but the longer-term uptrend remains intact, with 160 and potentially 162 as bullish targets.
The US dollar surged past 159 yen, signaling bullish continuation as carry trade demand and Bank of Japan policy divergence keep buyers in control.
The US dollar rebounded against the yen on Monday, with bullish momentum eyeing the 160 level as traders favor the carry trade amid persistent yen weakness.
USD/JPY surged to test 158 on Friday, signaling a potential breakout fueled by yield differentials and persistent yen weakness despite soft US job data.