The most active trading sessions for the USD/JPY take place in Tokyo, London and New York. Day traders look mostly to the London and New York sessions but those trading wishing to trade on the Asian markets can do so between 2400 GMT - 0900 GMT.
USD/JPY has traditionally been the most politically sensitive currency pair, with successive U.S. governments using the exchange rate as a lever in trade negotiations with Japan. For day-to-day trading, the most significant feature of USD/JPY is the heavy influence exerted by Japanese institutional investors and asset managers.
The USD/JPY has recently dipped below 101.00. Read the Daily Forex USD to Japanese Yen forecast and get access to the most up-to-date statistics, analyses and economic events regarding the USD/JPY.
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The strong upward trend of the USD/JPY currency pair remains supported by global central bank policies, with the pair stabilizing around the 151.43 resistance level at the time of writing the analysis.
We initially did try to rally, but the members of the Bank of Japan came out and did their usual jaw boning about monitoring currency fluctuations.
As mentioned before, the upward trend for the USD/JPY pair will remain intact.
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The US dollar is stable at a very high level against the Japanese yen, so that of course is a very bullish sign.
As previously noted, the contrast between the hawkish stance of the US Federal Reserve and the Bank of Japan, which has abandoned negative interest rates cautiously, provides strong momentum for the bulls' control over the direction of the USD/JPY currency pair.
The US dollar pulled back just a bit during the trading session on Monday, but at this point in time, it looks like we have plenty of support underneath to turn things around into signs of life.
At the start of trading in a quiet and short week, the USD/JPY pair stabilized around the resistance level of 151.20, halting a sharp decline amid concerns about the possibility of the Japanese authorities intervening again in the forex markets.
The USD/JPY initially tried to rally during trading on Friday but then turned around the fall.
According to forex trading, the Japanese yen was the main loser, falling by more than 1.5%, even after the Bank of Japan's historic decision to end eight years of negative interest rates and completely abolish the yield curve control policy.
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The USD/JPY currency pair moved after the Bank of Japan announced that it would raise Japanese interest rates and finally abandon negative interest rates.
You can see that the dollar has stretched higher against the Japanese yen overnight as the Bank of Japan raised interest rates to 0.1%.
Despite the long-awaited rate hike in Japan, the USD/JPY pair continued its upward trend, with gains reaching the resistance level of 150.48 at the time of writing the analysis.
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Sign up to get the latest market updates and free signals directly to your inbox.The US dollar has rallied pretty significantly during the early hours on Monday, but we still find quite a bit of resistance above.
The recent impact of central bank policy shift signals on the USD/JPY pair makes this trading week important for determining the direction of the dollar/yen pair in the coming days
The US dollar has rallied pretty significantly against the Japanese yen as trading on Friday ended.