On Tuesday, the day started with USD/JPY climbing steadily as traders prepared for the Federal Reserve’s monetary policy announcement. Currently, the pair is at 160.47, right in the intervention zone.
USD/JPY Price Prediction: Technical Outlook
Since last week, USD/JPY has bounced back from 159.50, but it hasn’t really picked up speed. Investor worries about potential Japanese intervention in the foreign exchange market seem to be holding it back. However, looking at momentum indicators, the uptrend still looks promising since the Relative Strength Index (RSI) is on the bullish side.
Interestingly, despite the Bank of Japan (BOJ) raising interest rates by 25 basis points to 1% on Tuesday, the yen didn’t strengthen, perhaps due to a renewed appetite for risk among investors.
On the upside, the first resistance for USD/JPY is at 160.50. Should it break that barrier, the year-to-date high of 160.73 could come into play, with the next target being 161.00.
On the flip side, if USD/JPY dips below 160.00, the psychological support would likely sit at 159.50, followed by the 50-day simple moving average (SMA) at 159.00. If that level doesn’t hold, the next support pops up at the 100-day SMA, which is around 158.02.
USD/JPY Price Chart – Daily
Today’s Japanese yen price
Below is the percentage change of the Japanese Yen (JPY) against major currencies today, showing the yen was particularly strong against the Australian dollar.
| USD | EUR | GBP | JPY | CAD | australian dollar | new zealand dollar | swiss franc | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.15% | -0.08% | 0.06% | 0.03% | 0.10% | -0.14% | -0.18% | |
| EUR | 0.15% | 0.09% | 0.26% | 0.20% | 0.24% | 0.01% | -0.02% | |
| GBP | 0.08% | -0.09% | 0.17% | 0.13% | 0.16% | -0.06% | -0.09% | |
| JPY | -0.06% | -0.26% | -0.17% | -0.06% | -0.01% | -0.19% | -0.25% | |
| CAD | -0.03% | -0.20% | -0.13% | 0.06% | 0.05% | -0.17% | -0.22% | |
| australian dollar | -0.10% | -0.24% | -0.16% | 0.01% | -0.05% | -0.22% | -0.25% | |
| new zealand dollar | 0.14% | -0.01% | 0.06% | 0.19% | 0.17% | 0.22% | -0.04% | |
| swiss franc | 0.18% | 0.02% | 0.09% | 0.25% | 0.22% | 0.25% | 0.04% |
This heat map illustrates the percentage changes between key currencies. To read it, select a base currency from the left column and compare with the quote currency from the top row. For example, choosing the Japanese Yen and moving horizontally to USD shows the percentage change for JPY (base) to USD (estimate).
Frequently asked questions about the Japanese Yen
The Japanese Yen (JPY) ranks among the most traded currencies globally. Its valuation is influenced largely by the dynamics of Japan’s economy, along with factors like the Bank of Japan’s policies, the yield difference between Japanese and U.S. bonds, and the overall risk sentiment of traders.
The Bank of Japan focuses significantly on exchange control, making its trends crucial for the yen. While the BOJ sometimes intervenes directly in currency markets, usually to lower the yen’s value, it tends to do so infrequently due to political implications with major trade partners. The prolonged ultra-easy policy from 2013 to 2024 caused a notable divergence from other major central banks, which led to a weakening of the yen against major currencies. However, recent steps towards easing that policy have offered some support to the yen.
Over the last ten years, the Bank of Japan’s commitment to an ultra-easy monetary policy has widened the gap compared to other central banks, particularly the U.S. Federal Reserve. This effectively highlighted the disparity between U.S. and Japanese bond yields, favoring the U.S. dollar against the yen. That gap may start to narrow as the BOJ gradually moves away from its ultra-easy policy in 2024, especially alongside rate cuts by other leading central banks.
Often viewed as a safe investment, the Japanese yen tends to attract investors during times of market stress. So, when things get shaky, it’s common for folks to seek shelter in the yen, which is typically perceived as steady and reliable. In times of turmoil, this can lead to an increased value of the yen relative to other currencies seen as riskier.
