USD/JPY Declines Amid Trump’s Visit to Japan

The Japanese yen strengthened on Monday, pushing the USD/JPY pair below the ¥152 mark. The move can be seen as a market reaction to U.S. President Donald Trump’s visit to Japan, where he met with the newly elected Prime Minister, Sanae Takaichi.

During the visit, the two leaders proclaimed a “new golden era” in U.S.–Japan relations and signed:
→ an official trade agreement introducing a 15% tariff on Japanese exports;
→ a deal on the supply of rare earth metals.

According to several media reports, Sanae Takaichi plans to nominate Donald Trump for the Nobel Peace Prize and invest around $550 billion in the U.S. economy.

Technical Analysis of the USD/JPY Chart

Applying a regression channel from the key low recorded on 17 September reveals a clear upward structure, which effectively illustrates major price movements (marked with arrows):
1 & 3 → rebounds from the lower boundary of the channel;
2 → reversal from the upper boundary;
4 → a consolidation phase near the median line, where supply and demand are balanced.

The latest decline from the median can be viewed as a sign of shifting sentiment, suggesting that sellers may now target the lower boundary of this channel. However:

→ the 151.50 level represents a notable support zone, having held firm on 21–22 October;
→ bearish conviction is also reinforced by the pair’s repeated failure to close above ¥153, forming what appears to be a Double Top pattern.

Whether the pair will reach the lower edge of the regression channel largely depends on the broader fundamental backdrop:
→ Trump’s international tour continues, with traders awaiting his meeting with China’s leadership;
→ this week’s key events include interest rate decisions from the Federal Reserve on Wednesday and the Bank of Japan on Thursday — the latter drawing particular attention given the recent change in Japan’s leadership.

These developments could significantly shift sentiment in the USD/JPY market — traders should be prepared for potential spikes in volatility.

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.