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 recent record US inflation numbers have increased market expectations that the US Federal Reserve may surprise everyone by announcing an increase in US interest rates at any time, especially since it has already reduced its purchases of bonds.
For the second day in a row, the USD/JPY is trying to compensate for its recent sharp losses, which pushed it towards the 112.72 support level, its lowest in a month.
The Japanese yen is stable against many major currencies, including the US dollar and the euro.
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As I predicted, the USD/JPY is ripe for profit-taking, which is what happened over the last three trading sessions and is settling around 112.72 as of this writing.
The US dollar declined at the end of last week's trading as confidence in the financial markets affected the international reserve currency.
Despite the announcement from the US Federal Reserve about its decision to reduce bond purchases, the USD/JPY remained stable around the 114.00 resistance.
All financial markets, not just the USD/JPY, are cautiously waiting for what the US Federal Reserve will announce later today
The USD/JPY returned to a 3-year high at the beginning of this week's trading, as the bulls moved to the 114.45 resistance before settling around 114.00 as of this writing.
For three weeks in a row, the USD/JPY has remained stable around the 114.00 resistance, near a 3-year high, amid strong expectations of a tightening of the US Federal Reserve's policy.
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The US dollar pairs in the Forex market are looking to the announcement of the US economic growth rate today.
For the second day in a row, the USD/JPY currency pair returned to stability around and above the 114.00 psychological resistance.
Recent profit-taking pushed the USD/JPY towards the 113.41 support level, with the pair settling near the 114.00 resistance as of this writing.
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Sign up to get the latest market updates and free signals directly to your inbox.For the fourth day in a row, the USD/JPY is undergoing profit-taking after its recent gains.
The Japanese yen appears to be at the mercy of US inflation expectations, which means that current selling is likely to stop unless expectations of US interest rate hikes persist.
Risk appetite is not in favor of the safe-haven Japanese yen, which experienced sharp losses against the other major currencies.