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.
Most Recent
For three consecutive trading sessions, The USD/JPY exchange rate has been on an upward trend reaching the resistance level of 143.89 and stabilizing around it at the time of writing.
The US dollar made an initial upward move in Wednesday's session against the Japanese Yen, suggesting the formation of a potential basing pattern.
The US dollar came under pressure in December 2023 amid sharply revised interest rate expectations.
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The Japanese yen ended 2023 trading on a high as selling pressure on the US dollar index (DXY) gained strength.
Analyzing the current dynamics in the USD/JPY market, it's evident that volatility remains a prominent feature.
The USD/JPY experienced a decline during Thursday's trading session, bringing it closer to the critical 141 yen level, which represents a focal point for market participants as to where the next trend appears.
The USD/JPY has moved lower again in early trading this morning and the currency pair is near support levels last challenged in late July 2023.
The Bank of Japan's (BoJ) policy shift towards near-term tightening and the abandonment of negative interest rates is continuing to drive strong and sharp gains for the Japanese yen against other major currencies.
It is natural that movements remain very quiet for the performance of the USD/JPY amid the holiday season, which affects liquidity and risk sentiment for investors.
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The USD/JPY’s recent price action against the Japanese yen has been characterized by back-and-forth movements within a relatively subdued trading session on Tuesday.
The long-awaited shift in policy direction by the Bank of Japan (BoJ) towards tightening has helped the Japanese yen to achieve strong gains against other major currencies, especially the dollar.
The trading session on Friday saw minimal activity for the USD/JPY, as it continued to hover around the crucial ¥142 level.
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With the Christmas holidays and investor reluctance, and amid almost non-existent liquidity, the price of the USD/JPY could remain stable around the level of 142.45.
The USD/JPY experienced a significant drop during Thursday's trading session, primarily driven by the continuous decline in interest rates within the United States.
For four consecutive trading sessions, the price of the USD/JPY has been trying to rebound higher to break out of the prominent downtrend channel on the daily chart below.