USD/JPY Forecast and News
USD/JPY holds steady above mid-157.00s; moves little after BoJ Minutes
USD/JPY preserves the overnight gains following the release of BoJ Minutes on Wednesday, though it remains below the 158.00 mark through the Asian session. As investors digest a joint US-Japan intervention, worries about Japan's strained fiscal condition undermine the Japanese Yen amid the wide BoJ-Fed rate gap. However, optimism over a US-Iran peace deal, along with receding Fed-hike bets, keeps US Dollar bulls on the back foot and caps the currency pair.
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USD/JPY Technical Overview
USD/JPY technical analysis
In the one-hour chart, USD/JPY trades at 157.88, maintaining a capped tone as it holds below the 100-period Simple Moving Average (SMA) at 159.85 and the 200-period SMA at 161.78. The pair is edging higher above the broken rising trend-line reference at 157.72 and the 23.6% Fibonacci retracement at 157.30, yet the broader setup suggests rallies remain vulnerable while these key averages stay overhead, even as the Relative Strength Index (RSI) at 58.22 hints at moderately constructive short-term momentum.
On the topside, initial resistance is located at the 38.2% retracement at 158.58, followed by a more meaningful barrier at the 50.0% level at 159.61, just ahead of the 100-period SMA at 159.85. Further up, the 61.8% retracement at 160.64 and the 200-period SMA at 161.78 converge with the 78.6% level at 162.12 to define a dense supply zone. On the downside, immediate support is seen around the 157.72 trend-line break area, with the 23.6% retracement at 157.30 underpinning the move; a deeper slide would expose the Fibonacci anchor near 155.23 as the next significant floor.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Fundamental Overview
Latest JPY Analysis
Editors' picks
USD/JPY holds steady above mid-157.00s; moves little after BoJ Minutes
USD/JPY preserves the overnight gains following the release of BoJ Minutes on Wednesday, though it remains below the 158.00 mark through the Asian session. As investors digest a joint US-Japan intervention, worries about Japan's strained fiscal condition undermine the Japanese Yen amid the wide BoJ-Fed rate gap. However, optimism over a US-Iran peace deal, along with receding Fed-hike bets, keeps US Dollar bulls on the back foot and caps the currency pair.
AUD/USD sits near mid-0.7000s, highest since June 17 as Iran deal hopes undermine USD
AUD/USD trades around mid-0.7000s during the Asian session on Wednesday, near its highest level since June 17, with bulls awaiting a breakout through the 100-day SMA before positioning for further gains. Crude oil prices hang near a four-week low amid hopes for a US-Iran peace deal and the full reopening of the Strait of Hormuz. This helps ease inflation fears and temper Fed rate hike bets, keeping US Dollar bulls on the defensive and supporting the currency pair.
Gold keeps the range despite fresh optimism
Gold extends Monday’s optimism and approaches the $4,100 mark per troy ounce on Tuesday. The yellow metal’s recovery remains on a positive footing as uncertainty surrounding US-Iran peace efforts and the Fed’s policy outlook keeps traders prudent.
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Majors
Cryptocurrencies
Signatures
Influential Institutions & People for the USD/JPY
The US Dollar Japanese Yen can be seriously affected by news or the decisions taken by two main central banks:
The Federal Reserve (Fed)
The Federal Reserve (Fed) is the central bank of the United States (US) and it has two main targets: to maintain the unemployment rate at its lowest possible levels and to keep inflation around 2%. The Federal Reserve System's structure is composed of the presidentially appointed Board of Governors and the partially appointed Federal Open Market Committee (FOMC). The FOMC organizes eight scheduled meetings in a year to review economic and financial conditions. It also determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. The FOMC Minutes, which are released by the Board of Governors of the Federal Reserve weeks after the latest meeting, are a guide to the future US interest-rate policy.
Fed official website , on X and Facebook
The Bank of Japan (BOJ)
The Bank of Japan (BoJ) is the central bank of Japan. Established under the Bank of
Japan Act in 1882, it is a juridical entity and neither a government agency nor a private corporation. The BoJ
sets monetary policy in the country. Its mandate is to issue banknotes and carry out currency and monetary
control to ensure price stability, which means an inflation target of around 2%.
Policy Board: The Policy Board is the bank's highest decision-making body. It determines the
guidelines
for currency and monetary control, sets the basic principles for carrying out the bank's operations and oversees
the performance of the bank's officers, excluding auditors and counselors.
History: The Bank of Japan was established under the Bank of Japan Act, promulgated in June
1882, and began operating as the nation's central bank on October 10, 1882. It was reorganized in 1942 under the
Bank of Japan Act of 1942,
which reflected the wartime context. The Act of 1942 was amended several times after World War II, and the
establishment of the Policy Board as the bank's highest decision-making body occurred in June 1949. In June
1997, the Act of 1942 was revised completely under the principles of independence and transparency. The revised
Act came into effect on April 1, 1998.
The official website , on X and YouTube
Kevin Warsh
Kevin Warsh took office as chairman of the Board of Governors of the Federal Reserve in May 2026, for a four-year term ending in 2030. His term as a member of the Board of Governors will expire in May 2040. Warsh, born in Albany (New York) on April 13, 1970, is an American financier and attorney who already served as a member of the Fed Board of Governors from 2006 to 2011 and was significantly involved in the central bank's response to the financial crisis. Before that, he served as a special assistant to the president for economic policy and the executive secretary of the National Economic Council under President George W. Bush.
Kazuo Ueda
Kazuo Ueda was born in Makinohara, Japan, on September 20, 1951. He is the 32nd and current Governor of the BoJ. He graduated from the University of Tokyo with a Bachelor of Science and Mathematics and received a PhD in economics from the Massachusetts Institute of Technology (MIT).
He is a professor emeritus at the University of Tokyo and also worked as a professor at Kyoritsu Women's University. In February 2023, former Prime Minister Fumio Kishida nominated Ueda as the governor of the BoJ. He is widely regarded as an expert on monetary policy but was considered a surprise appointment by analysts. He wasn’t even considered a dark-horse candidate, as the BoJ governor role has traditionally gone to long-serving Finance Ministry bureaucrats or central bank officials. Ueda is the first academic economist to lead the BoJ in the post-World War II era.
BOJ NEWS & ANALYSIS
FED NEWS & ANALYSIS
About USD/JPY
The USD/JPY (US Dollar Japanese Yen) currency pair is one of the 'Majors', a group of the most important currency pairs in the world. The Japanese Yen, known for its low interest rate, is frequently used in carry trades, making it one of the most traded currencies worldwide. In the USD/JPY pair, the US Dollar is the base currency and the Japanese Yen serves as the counter currency.
Trading USD/JPY is also known as trading the "ninja" or the "gopher", although the latter nickname is more frequently associated with the GBP/JPY pair. USD/JPY usually has a positive correlation with other pairs like USD/CHF and USD/CAD, as all three use the US Dollar as the base currency. The value of the pair is often influenced by interest-rate differentials between the two central banks: the Federal Reserve (Fed) and the Bank of Japan (BoJ).
Related pairs
GBP/USD
The GBP/USD (or Pound Dollar) currency pair belongs to the group of 'Majors', referring to the most important and widely traded pairs in the world. The pair is also known as “the Cable”, a term originating in the mid-19th century that refers to the first transatlantic telegraph connecting Great Britain and the United States. As a closely watched and widely traded currency pair, it features the British Pound as the base currency and the US Dollar as the counter currency. For that reason, macroeconomic data from both the United States and the United Kingdom significantly impacts its price. One notable event that affected the volatility of the pair was Brexit.
EUR/USD
The EUR/USD (or Euro Dollar) currency pair belongs to the group of 'Majors', a term used t o describe the most important currency pairs in the world. This group also includes GBP/USD, USD/JPY, AUD/USD , USD/CHF, NZD/USD and USD/CAD . The popularity of the Euro Dollar pair stems from its representation of two of the world’s largest economies: the Eurozone and the United States.
The EUR/USD is one of the most widely traded currency pairs in the Forex market, where the Euro serves as the base currency and the US Dollar as the counter currency. It accounts for more than half of the total trading volume in the Forex market, making gaps almost inexistent, let alone sudden reversals caused by breakaway gaps.
The EUR/USD is usually quiet during the Asian session, as economic data influencing the pair is usually released during the European or US sessions. Activity increases as European traders begin their day, leading to heightened trading volume. This activity slows around midday during the European lunch break but picks up again when US markets come online.