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.
As I predicted, the USD/JPY is ripe for profit-taking, which is what happened over the last three trading sessions and is settling around 112.72 as of this writing.
Despite the announcement from the US Federal Reserve about its decision to reduce bond purchases, the USD/JPY remained stable around the 114.00 resistance.
The USD/JPY returned to a 3-year high at the beginning of this week's trading, as the bulls moved to the 114.45 resistance before settling around 114.00 as of this writing.
For three weeks in a row, the USD/JPY has remained stable around the 114.00 resistance, near a 3-year high, amid strong expectations of a tightening of the US Federal Reserve's policy.
The Japanese yen appears to be at the mercy of US inflation expectations, which means that current selling is likely to stop unless expectations of US interest rate hikes persist.
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