USDJPY Forecast and News
USD/JPY struggles to recapture 150.00 as fears of BoJ’s intervention remain intact
USD/JPY fails to recapture 150.00 for now as profit-booking hits US Dollar, more upside seems favored. Broader appeal for the US Dollar is still bullish amid resilient US economy and Fed’s hawkish stance. The Japanese Yen may discover strength if BoJ intervenes.
Latest JPY News
Technical Overview
The USD/JPY pair faced nominal sell-off while attempting to recapture the psychological resistance of 150.00 on Thursday. The asset corrects marginally, following footprints of the US Dollar Index (DXY), which faces long liquidation after printing a afresh 10-month high at 106.80.
Fundamental Overview
S&P500 futures generated some gains in the London session, portraying some improvement in the risk-appetite of the market participants. US equities ended on a flat note on Wednesday amid caution about Federal Reserve’s (Fed) interest rate outlook. The US Dollar Index (DXY) corrects gradually to near 106.30 after failing to stretch rally.
Broader appeal for the US Dollar is still bullish as the United States economy is resilient due to declining inflation, stable labor growth and robust consumer spending. Unlike other G7 economies, which are struggling for a firm footing due to their inability in coping with the consequences of higher interest rates by central bankers.
The US economy has been showing excellence on the grounds of labor market, households’ demand, and inflation but its Manufacturing PMI have been contracting consistently from past 10 months. Investors anticipate a recovery in factory activities ahead as order book for core goods surprisingly expanded in August. The Durable Goods Orders rose by 0.2% while investors anticipated a decline by 0.5%. In July, Orders were contracted sharply by 5.6%.
The Japanese Yen may strengthen on the potential intervention of the Bank of Japan (BoJ). Japanese Finance Minister Shunichi Suzuki reiterated on Thursday, he won't rule out any steps to respond if there's any excessive FX volatility. He further added, the authority is closely watching FX moves with sense of urgency.
Big Picture
USDJPY Bullish Themes
USDJPY Bearish Themes
Latest JPY Analysis
Editors' picks
EUR/USD posts biggest daily gain in a month Premium
EUR/USD peaked at 1.0579, which marked the highest level in two days, before experiencing a pullback towards 1.0550. Despite the retreat, the Euro had its best performance in a month. The focus turns to consumer inflation data for the Eurozone and the US on Friday.
GBP/USD consolidates gains near 1.2200
GBP/USD extended its rebound and rose to 1.2224. Later it pulled back under 1.2200, but is still headed toward the biggest daily gain in more than a month. A correction of the US Dollar boosted the pair.
USD/JPY struggles to recapture 150.00 as fears of BoJ’s intervention remain intact
USD/JPY fails to recapture 150.00 for now as profit-booking hits US Dollar, more upside seems favored. Broader appeal for the US Dollar is still bullish amid resilient US economy and Fed’s hawkish stance. The Japanese Yen may discover strength if BoJ intervenes.
Gold extends slump to the $1,850 region Premium
Gold price extended its decline on Thursday to $1,857.66 a troy ounce, its lowest since early March. The US Dollar lost ground against most major rivals but surged vs the bright metal as the market mood slightly improved. European and American indexes traded with a better tone, helped by encouraging United States macroeconomic data.
Oil jumps ahead of important Cushing stockpile data
West Texas Intermediary (WTI) Crude Oil prices build on this week's goodish rebound from the vicinity of mid-$88.00s and scale higher for the third successive day on Wednesday. The momentum lifts the commodity closer to the $94.00/barrel mark, or the highest level since late August 2022 during the Asian session and remains well supported by continued signs of tighter global supply.
Majors
Cryptocurrencies
Signatures
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.
USDJPY FORECAST 2023
The Japanese Yen's strength from the last quarter of 2022 has found an interim bottom at the beginning of the new year. 2023 is set to be a challenger year for the USD/JPY currency pair.
From January 2022 to December 2022, the maximum level for the USDJPY was 150.176¥/USD (on October 20th 2022), and the minimum, 131.1170¥/USD (on December 30st 2022).
MOST INFLUENTIAL POLITICAL EVENTS IN 2023 FOR USDJPY
Central banks' imbalances played a big role in the matter, with the US Federal Reserve adopting aggressive tightening in March 2022 and the Bank of Japan holding on to its ultra-loose monetary policy.
Could Ueda’s strong theoretical knowledge help to unravel and reorganize the “various confusing parts” of the BOJ’s monetary policy? Regarding BOJ monetary policy, he said: "I think the current policy is appropriate, monetary easing must carry on given the current state."
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
Kazuo Ueda
Kazuo Ueda is the 32nd and current Governor of the Bank of Japan. He is a professor and the dean of the business department at Kyoritsu Women's University in Tokyo and the external director at JGC Holdings Corp, an engineering company and at the state-owned Development Bank of Japan. The 71-year-old is widely seen as an expert on monetary policy but is seen as a surprise appointment by analysts. He was not even considered a dark-horse candidate. Ueda wasn’t really on their radar because the BOJ governor job has traditionally been assumed by a long-serving Finance Ministry bureaucrat or central bank official.
Ueda on Wikipedia's Profile
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.