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
The USD/JPY experienced a modest retreat during Wednesday's trading session, encountering resistance at the 200-Day Exponential Moving Average.
Yesterday, in one of the last major economic events of 2023, the Bank of Japan concluded its December 2023 monetary policy meeting and issued its latest decision on interest rates.
On Tuesday, the USD/JPY demonstrated remarkable strength, swiftly breaching the ¥145 level.
Top Forex Brokers
Today, all currencies against the Japanese yen will be in a waiting mode for the Japanese Central Bank to announce an update on its monetary policy.
During Monday's trading session, the US dollar saw a modest recovery against the Japanese yen.
The US dollar rebounded ahead of the weekend last week after one of the Federal Open Market Committee members said that his colleagues should be prepared to raise interest rates again if necessary.
The US dollar and Japanese yen have been engaged in a back-and-forth battle around the ¥142 level in recent trading sessions.
The USD/JPY had a bit of a tough time during the early hours of Thursday's trading session, slipping below the ¥142 level.
The USD/JPY is trading at depths last seen in late July of this year, after the currency pair reacted to yesterday’s U.S Federal Reserve ‘new’ rhetoric and dove lower.
Bonuses & Promotions
After the US central bank's decision yesterday, the Japanese yen rose by more than 1% against the US dollar as traders intensified their bets on stronger US rate cuts by the Federal Reserve in 2024 therefore, with their speculation on the timing of the Bank of Japan's exit from negative interest rates, USD/JPY fell 1.3%, extending losses to the 140.95 support level, the pair's lowest level in four months.
The USD/JPY showed initial strength on Wednesday, with market participants closely monitoring the Federal Reserve's forthcoming statement.
Since the start of trading this week, the price of the USD/JPY has been trying to rebound higher. Moreover, its gains have not exceeded the resistance level of 146.58 before stabilizing around 145.50 at the time of writing the analysis.
Subscribe
Sign up to get the latest market updates and free signals directly to your inbox.
The USD/JPY embarked on a remarkable journey in Tuesday's trading session, initially experiencing a sharp decline before testing the ¥145 level.
Recently, it was clear that the Bank of Japan's hints that its monetary policy was imminently shifting to an accommodative monetary policy contributed strongly to the price of the Japanese yen moving strongly against the rest of the other major currencies.
The US dollar displayed a modest rally during Monday's trading session, part of a broader trend of dollar recovery.