USDJPY Forecast and News
USD/JPY remains well supported above 113.70 ahead of Fed decision
USD/JPY recaptures 114.00 amid resurgent US dollar demand. Markets expect Fed to shift to the hawkish pivot, hinting at a March rate hike. 50-DMA is the level to beat for bulls while above the critical support at 113.72.
Latest JPY News
Technical Overview.
USD/JPY’s daily chart shows that the price has once again bounced from the two-month-old ascending trendline support at 113.72.
The rebound needs acceptance above the horizontal 50-Daily Moving Average (DMA) at 114.30 to confirm a meaningful recovery.
The next stop for bulls is seen at the January 20 highs of 114.54.
Fundamental Overview
USD/JPY is bouncing back above 114.00, having found fresh buyers once again near the 113.70 region.
The latest uptick in the major could be associated with the resurgent demand for the US dollar across the board, as investors prefer holding the buck heading into the Fed’s interest decision, the first of 2022 and expected to be a hawkish one.
The US central bank is likely to hint at a March rate hike while expressing concerns over hotter inflation. The Treasury yields are also attempting a comeback amid hawkish Fed expectations, adding to the upside in the major.
Markets have shifted their attention from the Russia-Ukraine crisis to the Fed verdict, as the risk sentiment remains elevated in European trading. The S&P 500 futures are up 0.88% on the day while the Euro Stoxx 50 Index is higher by 1.95% so far.
SPECIAL WEEKLY FORECAST
Interested in weekly USDJPY forecasts? Our experts make weekly updates forecasting the next possible moves of the yen-dollar pair. Here you can find the most recent forecast by our market experts:
USD/JPY: The Fed’s next step is balance sheet reduction Premium
The USD/JPY moved further from its four-year high at 116.10 on January 4, dipping below 114.00 on Thursday and trading to a one-month low on Friday. Dollar weakness proliferated in spite of the diverging monetary policies of the Federal Reserve and the Bank of Japan (BOJ).
Big Picture
USDJPY Bullish Themes
USDJPY Bearish Themes
Latest JPY Analysis
Editors' picks
EUR/USD extends slide on hawkish Powell comments, trades below 1.1250
EUR/USD holds lower ground after Fed directed bears to five-week low. Bearish MACD signals, clear downside break of two-month-old.Buyers remain cautious until refreshing the 2022 peak, 61.8% FE will challenge bears past 1.1185.
GBP/USD drops below 1.3500 on renewed dollar strength
GBP/USD lost its traction and fell into the negative territory below 1.3500. The greenback seems to be capitalizing on FOMC Chairman Jerome Powell's hawkish remarks, causing the pair to continue to edge lower.
USD/JPY remains well supported above 113.70 ahead of Fed decision
USD/JPY recaptures 114.00 amid resurgent US dollar demand. Markets expect Fed to shift to the hawkish pivot, hinting at a March rate hike. 50-DMA is the level to beat for bulls while above the critical support at 113.72.
Gold bears sink their teeth into the market on hawkish Powell pivot
At $1,817.59, gold is moving towards the close and down some 1.65% after falling from a $1,850.11 high to test a low of $1,814.98. The drop came on the back of a hawkish twist at the Federal Reserve event on Wednesday.
WTI briefly surpasses $87.00 level, eyes multi-year highs as geopolitical tensions eyed
Front-month WTI futures hit fresh highs for the week above the $87.00 level on Wednesday, as a broad risk appetite recovery combined with ongoing geopolitical and OPEC+ supply concerns underpinned the price action. WTI is now nearly $4.50 or over 5.0% higher versus Monday’s lows near $82.00 per barrel and earlier in the session when prices surpassed the $87.00 mark, was only a whisker below last week’s multi-year highs at $87.90 per barrel.
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USDJPY YEARLY FORECAST
How could USDJPY move this year? Our experts make a USDJPY update forecasting the possible moves of the yen-dollar pair during the whole year. Don't miss our 2022 USDJPY forecast!
USDJPY FORECAST 2022
In the USDJPY Price Forecast 2022, our dedicated contributors seeing a sideways tendency. By the end of the year 2021, the average forecast for the pair is 103.2100. Read more details about the forecast.
From January 2021 to December 2021, the maximum level for the USDJPY was 115.42¥/USD (on November 24th 2021), and the minimum, 103.49¥/USD (on January 21st 2021).
MOST INFLUENTIAL POLITICAL EVENTS IN 2022 FOR USDJPY
Political measures to counter coronavirus will be in the focus of the market this 2022. The prolonged impact of the pandemic resulted in major central banks launching asset-buying and lending programs while keeping policy rates near record lows.
Following decades of substantial growth, Japan has been suffering from stagnation since the 1990's stock buble crisis, marked by low inflation, low interest rates and sluggish growth. 2022 might be a a good time to think about the role of current monetary policies and their real impact on economic developments.
Influential Institutions & People for the USDJPY
The US Dollar Japanese Yen can be seriously affected by news or the decisions taken by two main central banks:
The Federal Reserve Bank (Fed)
On the other
FED Official Website, on Twitter and Facebook
The Bank of Japan (BOJ)
The Bank of Japan is the central bank of Japan and it's a juridical person established based on the Bank of Japan Act, nor being a government agency either a private corporation. The most important missions of the BOJ are the following: to issue and manage banknotes, to implement monetary policy and to ensure stability of the financial system. Almost all of the decisions are taken by the Policy Board, formed by a bunch of members working to provide currency and monetary control and setting the next moves that the central bank will take.
BOJ Official Website and on Twitter
Jerome Powell
Jerome Powell took office as chairman of the Board of Governors of the Federal Reserve System in February 2018, for a four-year term ending in February 2022. His term as a member of the Board of Governors will expire January 31, 2028. Born in Washington D.C., he received a bachelor’s degree in politics from Princeton University in 1975 and earned a law degree from Georgetown University in 1979. Powell served as an assistant secretary and as undersecretary of the Treasury under President George H.W. Bush. He also worked as a lawyer and investment banker in New York City. From 1997 through 2005, Powell was a partner at The Carlyle Group.
Jerome Powell Fed's Profile and Wikipedia
Haruhiko Kuroda
Haruhiko Kuroda was nominated, by Prime Minister Shinzo Abe, as Governor of the Bank of Japan in March 2013. He had previously worked as President of the Asian Development Bank for 8 years. As the head of the BOJ, he has a major influence over the Japanese Yen. His words are usually followed by traders in order to find any clue of next possible trend in the currency.
Draghi on BOJ'S Profile and Wikipedia
BOJ NEWS & ANALYSIS
FED NEWS & ANALYSIS
About USDJPY
The USDJPY (or US Dollar Japanese Yen) currency pair belongs to the group of 'Majors', a way to mention the most important pairs in the world. This group also includes the following currency pairs: EUR/USD, GBP/USD, AUD/USD, USD/CHF, NZD/USD and USD/CAD. Japanese Yen has a low-interest rate and is normally used in carrying trades. This is the reason why is one of the most traded currencies worldwide. In this pair, the US Dollar is the base currency and the Japanese Yen is the counter currency. The pair represents American (from the United States of America) and Japanese economies.
Trading this currency pair is also known as trading the "ninja" or the "gopher", although this last name is more frequently used when referred to the GBP/JPY currency pair. The US Dollar Japanese Yen usually has a positive correlation with the following two pairs: USD/CHF and USD/CAD. The nature of this correlation is due to the fact that both currency pairs also use the US Dollar as the base currency. The value of the pair tends to be affected when the two main central banks of each country, the Bank of Japan (BoJ) and the Federal Reserve Bank (Fed), face serious interest rate differential.
Related pairs
GBP/USD
The GBP/USD (or Pound Dollar) currency pair belongs to the group of 'Majors', a way to mention the most important pairs worldwide. This group also includes the following currency pairs: EUR/USD, USD/JPY, AUD/USD, USD/CHF, NZD/USD and USD/CAD. The pair is also called 'The Cable', referring to the first Transatlantic cable that was crossing the Atlantic Ocean in order to connect Great Britain with the United States of America. This term was originated in the mid-19th century and it makes GBP/USD one of the oldest currency pairs in the world.
The popularity of the Pound Dollar is due to the fact that represents two strong economies: British and American (from the United States of America). The Cable is a closely watched and widely traded currency pair where the Pound is the base currency and the US Dollar is the counter currency. For that reason, all the macroeconomic data related to the United States and the United Kingdom affects the price of this pair. One of the events which affected most the volatility of the pound vs. dollar was Brexit.
EUR/USD
The EUR/USD (or Euro Dollar) currency pair belongs to the group of 'Majors', a way to mention the most important pairs in the world. This group also includes the following currency pairs: GBP/USD, USD/JPY, AUD/USD, USD/CHF, NZD/USD and USD/CAD. The popularity of Euro Dollar is due to the fact that it gathers two main economies: the European and American (from United States of America) ones. This is a widely traded currency pair where the Euro is the base currency and the US Dollar is the counter currency. Since the EUR/USD pair consists of more than half of all the trading volume worldwide in the Forex Market, it is almost impossible for a gap to appear, let alone a consequent breakaway gap in the opposite direction.
Normally, the EUR/USD is very quiet during the Asian session because economic data that affects the fundamentals of those currencies is released in either the European or U.S. session. Once traders in Europe get to their desks a flurry of activity hits the tape as they start filling customer orders and jockey for positions. At noon activity slows down as traders step out for lunch and then picks back up again as the U.S. comes online.