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 US dollar remains strong in the Forex market as investors begin to flock to traditional safe-haven assets amid an ocean of red ink in global financial markets.
The USD/JPY pair's stable performance is expected to remain until investors and markets identify and interact with the important events of this week, starting with the FOMC.
The outlook for the US dollar was boosted last Friday when official figures confirmed US inflation had risen to a new multi-decade high last month, which is likely to keep the Federal Reserve (Fed) on course to accelerate its monetary policy normalization.
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Concerns in Asia about the economic situation in China calmed a bit, leaving room for risk appetite.
Since the start of this week's trading, the USD/JPY has been moving within attempts to rebound upwards, reach the 113.78 resistance and settling around 113.50 as of this writing.
For three trading sessions in a row, the USD/JPY has been trying to stop its losses, moving towards the 113.61 resistance amid a relative calm in the markets considering the Chinese crisis and the new COVID variant.
Immediately after the US jobs report, the USD/JPY fell to the 112.55 support level, and as the markets absorbed the results, the pair returned to settle around 113.05 as of this writing.
The USD/JPY's attempts to recover were still weak yesterday.
The recent sell-off of the USD/JPY currency pair pushed it towards the 112.53 support level, its lowest in more than a month, but it settled around the 113.55 level after the dollar’s gains from Jerome Powell’s warning that the interest rate hike may come sooner than expected.
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For the third day in a row, the USD/JPY is settling below the 113.00 support level after strong selloffs which the pair recently witnessed as it collapsed from its highest level in six years, when it tested the 115.52 resistance level last week.
A state of risk-aversion prevailed in global financial markets at the end of last week’s trading amid decisions by countries around the world to impose restrictions due to a new variant of the Corona virus that resists available vaccines.
The US dollar has pulled back ever so slightly during the trading session on Thursday, which of course was Thanksgiving in the United States.
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Sign up to get the latest market updates and free signals directly to your inbox.Undoubtedly, expectations of raising US interest rates helped US dollar pairs achieve strong and sharp gains.
The USD/JPY touched long-term highs in early trading today near the 115.150 ratio, essentially testing levels not seen since March 2017.
The USD/JPY continued its upward momentum to the 115.14 resistance level, its highest in five years, where it settled as of this writing.