USD/JPY Analysis: Pair Reaches 5-Month High
FXOpen
The Japanese yen remains under pressure, trading near a five-month low against the US dollar. This trend is primarily driven by differences in monetary policy approaches.
On one side, the Federal Reserve maintains a hawkish stance, signalling a gradual slowing of monetary easing in 2025.
On the other, the Bank of Japan continues its cautious approach to policy tightening, as confirmed by a Reuters report published today. Although Japan’s Finance Minister issued warnings this week about potential market interventions, these statements have had little immediate impact.
According to technical analysis of the USD/JPY chart, the pair is trending within a well-defined upward channel (marked in blue) with the following notable developments:
→ In September, the psychological level of 140 yen per dollar served as strong support for bulls, while in December, this shifted to 150 yen per dollar (as indicated by arrows).
→ Since September, price movements have established a steeper upward channel (highlighted in purple).
→ The pair has now reached the median line of the longer-term blue channel, suggesting a potential for more stable trading. This stability may also be supported by reduced trading activity during the holiday season.
The current price action mirrors the conditions seen in summer 2024, when the pair steadily rose toward the critical level of 160 yen per dollar. As we enter early 2025, bulls may once again test this key threshold, seeking to push the pair higher.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips (additional fees may apply). Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
Euro and Pound Retreat from Highs After Strong US Data
The euro and pound have pulled back from their recent highs as the US dollar regained ground following a batch of stronger-than-expected economic data. The Personal Consumption Expenditures (PCE) price index accelerated to 3.7% year-on-year, compared with expectations of
Alibaba Analysis: Uptrend Break Attempt Amid Rising AI Investment
Alibaba reported its first-quarter results on 20 August, revealing a mixed picture for investors. Revenue increased by 9%, driven by accelerating growth in its cloud computing and AI businesses, but net profit fell by nearly three-quarters as capital expenditure on
EUR/AUD: A Hawkish Euro Meets a Stubborn Downtrend
The euro is riding genuine hawkish momentum right now. It's holding above $1.165 against the dollar, its strongest level since mid-May, with markets fully pricing in an ECB hike in September following June's initial tightening move. That conviction is