USDJPY is currently trading within the 156.00–157.00 range.
Monetary divergence between the US Federal Reserve (Fed) and the Bank of Japan (BoJ) remains one of the key drivers for the pair. The American regulator held interest rates steady at 3.75%, while its counterpart kept them significantly lower at 0.75%. This gap makes the dollar-denominated assets far more attractive for carry-trade hunters, underpinning the greenback.
From a technical perspective, USDJPY maintains a positive long-term outlook that has been in place since mid-2025. Prices keep climbing within an ascending channel and its lower boundary acts as solid, unshakeable support.
In recent weeks, the pair reached local highs near 160.00 before entering a mild correction, triggered by currency interventions from Japanese authorities. However, these actions did little to disrupt either the fundamental or technical picture.
Quotes are now approaching the bottom line of the trading range. This zone coincides with key technical levels, which only adds to its significance. The first is the 200-day exponential moving average; the second is the lower boundary of the ascending channel. Given these conditions, buying from this floor looks like a smart move.
The ultimate recommendation is to buy USDJPY at the current price, targeting 160.50 within a couple of months. To mitigate the risk of adverse market movements, place a Stop Loss order beneath the lower boundary of the channel, or at around 155.00.
This content is for informational purposes only and is not intended to be investing advice.
