USD/JPY Recovers After Dropping Below 150 Yen per Dollar
FXOpen
As the USD/JPY chart shows:
→ Yesterday, the pair fell below the psychological level of 150 yen per dollar.
→ However, today it staged a strong recovery, rising back above this level.
The yen weakened following the release of Japan's inflation data. According to Forex Factory, the National Core CPI increased by 3.2% year-over-year (forecast: 3.1%, previous: 3.0%).
According to Reuters:
→ The 19-month high in CPI strengthens expectations of further interest rate hikes in Japan.
→ The yen is weakening as Bank of Japan Governor Kazuo Ueda stated that the central bank may step up government bond purchases if long-term interest rates rise.
Can USD/JPY Continue to Rise?
USD/JPY Technical Analysis
On 12th February, we noted that key highs and lows over the past three months formed an ascending channel, with the 154 yen per dollar level acting as a resistance barrier.
Indeed, since then, bulls have failed to sustain levels above 154 yen per dollar (as indicated by the arrow), leading to a decline below the lower boundary of the blue channel after a brief rebound on 18th February.
As a result, the former support at the lower boundary of the blue channel may now act as resistance around 151.3 yen per dollar, reinforcing the relevance of the descending channel (marked in red).
The trajectory of USD/JPY today could be significantly influenced by the release of the US Flash Manufacturing PMI and Flash Services PMI indices at 16:45 GMT+2.
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
EUR/USD and GBP/USD consolidate ahead of the Fed decision
European currencies are showing subdued dynamics, entering a consolidation phase following their previous advance. Earlier, EUR/USD and GBP/USD broke out of their ranges and strengthened; however, the subsequent correction has led both pairs to retest the previously breached
Meta: V-Shaped Recovery Meets Heavy Volume Resistance
The movement in Meta Platforms shares is being driven by two competing narratives. On one hand, advertising revenue is benefiting from AI-based tools: the Advantage+ platform continues to support strong advertiser demand, and the analyst consensus for Q1 2026 revenue
Commodity Currencies Test Key Levels Ahead of Major Macro Data
Commodity-linked currencies are trading near key levels, showing restrained price action as market participants adopt a wait-and-see approach. The fundamental backdrop is shaped by expectations surrounding the release of Australia’s inflation data and the Bank of Canada’s interest