USDJPY Forecast and News


USD/JPY hits multi-month lows near 109.00 amid risk aversion

USD/JPY continues to decline on Wednesday for the straight second day. The pair extends the losses in the initial Asian trading session on Wednesday. The sluggish movement in the US dollar sponsors the lacklustre performance of the pair. 

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Technical Overview.

The USD/JPY pair retains its bearish stance in the near-term. The 4-hour chart shows that the pair has still room to go to the downside. It’s trading well below a bearish 20 SMA that keeps distancing from the longer ones, which also head south. Also, the Momentum indicator heads firmly lower within negative levels, while the RSI consolidates near oversold readings, indicating prevalent selling interest.

Support levels: 109.05 108.70 108.25

Resistance levels: 109.40 109.85 110.20  


Fundamental Overview

The USD/JPY pair has extended its slump to 108.87, its lowest since May 26. The pair bounced from such a low but ended the day in the red in the 109.10 price zone, incapable of attracting buyers. The pair fell as government bond yields remained depressed throughout the day, while Wall Street opened in the red. As equities recovered, the pair got to bounce. In the meantime, the yield on the 10-year US Treasury note spent most of the day hovering around 1.17%.

At the beginning of the day, Japan published the July Monetary Base at the beginning of the day, which came in at 15.4% YoY, down from 19.1% in the previous month. Tokyo July’s inflation was down 0.1% YoY, although the core reading came in slightly better than anticipated, printing at 0.1%. The country will publish the July Jibun Bank Services PMI during the upcoming Asian session, foreseen at 46.4, down from the previous 48.



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: View ahead is the same as the view behind

Prospect of higher US interest rates fade on weak data, Fed dovishness. USD/JPY loses 110.00 on Tuesday, stays below on Friday. Technical considerations dominate near-term USD/JPY action, bias weakly lower.

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USDJPY Bullish Themes

USDJPY Bearish Themes

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Latest JPY Analysis


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Editors' picks

EUR/USD consolidates near 1.1870 ahead of EU Retails Sales data

The selling tone surrounding the US dollar amid falling US Treasury yields keeps EUR/USD on the verge of daily gains. After touching the low of 1.1753, the pair continues to march higher since the beginning of the week.

EUR/USD News

GBP/USD: Key DMAs test up-moves past 1.3900

GBP/USD seesaws around 1.3920-15 amid the initial Asian session on Wednesday. In doing so, the cable takes rounds to 50.0% Fibonacci retracement (Fibo.) of June–July downturn while keeping the previous day’s rebound from the resistance-turned-support line from June 01.

GBP/USD News

USD/JPY hits multi-month lows near 109.00 amid risk aversion

USD/JPY continues to decline on Wednesday for the straight second day. The pair extends the losses in the initial Asian trading session on Wednesday. The sluggish movement in the US dollar sponsors the lacklustre performance of the pair. 

USD/JPY News

Gold consolidates in the $1,800-$1,820 range

Gold prices notch higher on Wednesday and refresh daily high near $1816. A combination of factors contributes to the movement of the precious metal in a closing trade range of $20 for the past three sessions.

Gold News

WTI starts the day off bid despite covid concerns

WTI is in the hands of the bulls for the open in Asia following a down day in European and US markets. Concerns over the spread of Delta variant in the United States and China, the top oil consumers, weighed on prices on Tuesday. Both benchmarks were falling more than 3% at one point.

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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 2021 USDJPY forecast!

USDJPY FORECAST 2021

In the USDJPY Price Forecast 2021, our dedicated contributors seeing a sideways tendency. By the end of the year 2020, the average forecast for the pair is 103.2100. Read more details about the forecast.

From January 2020 to December 2020, the maximum level for the USDJPY was 112.28¥/USD (on February 19th 2020), and the minimum, 102.94¥/USD (on March 09th 2020).

MOST INFLUENTIAL POLITICAL EVENTS IN 2021 FOR USDJPY

Political measures to counter coronavirus will be the market focus this 2021. The prolonged impact of the COVID-19 pandemic resulted in worldwide central banks launching asset-buying and lending programs while keeping the main rates on hold at record lows.

The BoJ announced it “will conduct an assessment on further effective and sustainable monetary easing,” and pledged to maintain the current monetary easing until inflation reaches the 2% goal.


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 hand we found The Federal Reserve System (Fed) wich is the central banking system of the United States. Fed has two main targets: to keep unemployment rate to their lowest possible levels and inflation around 2%. The Federal Reserve System's structure is composed of the presidentially appointed Board of Governors, partially presidentially appointed Federal Open Market Committee (FOMC). The FOMC organizes 8 meetings in a year and reviews economic and financial conditions. Also determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth.

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.


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.

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. 

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.