USDJPY Forecast and News


USD/JPY clings to modest gains, remains below 109.00 mark

USD/JPY edged higher for the second consecutive session on Tuesday amid stronger USD. An uptick in the US bond yields acted as a tailwind for the USD and remained supportive. The risk-on mood underpinned the safe-haven JPY and might cap the upside for the pair.

Latest JPY News


Technical Overview.

The USD/JPY pair traded with a mild positive bias during the early European session, with bulls making a fresh attempt to conquer and build on the momentum beyond the 109.00 mark.


Fundamental Overview

The US dollar built on the overnight modest bounce from the lowest level since February 25 amid a modest uptick in the US Treasury bond yields. This, in turn, was seen as a key factor that assisted the USD/JPY pair to edge higher for the second consecutive session on Tuesday.

Apart from this, worries that the recent surge in COVID-19 cases could hinder Japan's fragile economic recovery further acted as a headwind for the Japanese yen. That said, a generally softer risk tone underpinned the safe-haven JPY and might cap the upside for the USD/JPY pair.

Meanwhile, the downside is likely to remain cushioned amid expectations that rising inflation might force the Fed to tighten its monetary policy sooner rather than later. Hence, the key focus will remain on the latest US consumer inflation figures, due for release on Wednesday.

In the meantime, the US bond yields will play a key role in influencing the USD price dynamics. Apart from this, the broader market risk sentiment will also be looked upon for some trading opportunities around the USD/JPY pair amid absent relevant market moving economic releases.



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 Weekly Forecast: Can inflation rescue the dollar?

The USD/JPY dozed from Monday’s open at 109.36 to Friday’s 109.17 approach to the US Nonfarm Payrolls report (NFP), then woke with a start as the US economy added just one-quarter of the expected jobs. American firms hired 266,000 people in April and the unemployment rate rose to 6.1%, according to the US Department of Labor.

Read full analysis

Big Picture

USDJPY Bullish Themes

USDJPY Bearish Themes

Sponsor broker


FXS Signals

Latest JPY Analysis


Latest JPY Analysis

Editors' picks

EUR/USD rises above 1.2150 amid upbeat German data

EUR/USD has been rising above 1.2150 after the German ZEW Economic Sentiment gauge beat expectations with 84.4 points. Earlier, concerns about inflation boosted the dollar. 

EUR/USD News

GBP/USD trades off the highs amid risk-off mood, ahead of Bailey

GBP/USD is trading above 1.41 but off the fresh highs. The safe-haven dollar is gaining ground amid fears of inflation. UK PM Johnson's announcement of additional easing of restrictions boosted the pound on Monday. BOE Governor Andrew Bailey is set to speak later on.

GBP/USD News

USD/JPY clings to modest gains, remains below 109.00 mark

USD/JPY edged higher for the second consecutive session on Tuesday amid stronger USD. An uptick in the US bond yields acted as a tailwind for the USD and remained supportive. The risk-on mood underpinned the safe-haven JPY and might cap the upside for the pair.

USD/JPY News

XAU/USD remains confined in a range below $1,840 level

Gold is in the hands of the bulls but a correction is on the cards.  The monthly outlook is critical which makes the next few weeks testing for the gold market. 

Gold News

WTI wobbles around $65.00 amid receding US pipeline jitters, mild risk-on mood

WTI picks up bids near $64.90, bouncing off the immediate range support, during the initial Asian session trading on Tuesday. In doing so, the oil benchmark struggles to justify mixed fundamentals amid a lack of major catalysts, not to forget cautious mood before the week’s key US data.

Oil News

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. 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.