Русский
USD/JPY continues to decline as the Japanese Yen strengthens amid a softer US Dollar. The market reacts to the divergent policy outlook between the Bank of Japan (BoJ) and the Federal Reserve. Traders anticipate a possible BoJ rate hike in 2025, supporting the Yen and pressuring USD/JPY.
Meanwhile, the BoJ maintained its short-term interest rate target within the 0.40%-0.50% range, reinforcing expectations of gradual policy tightening. Rising geopolitical risks and trade uncertainties also boost demand for the safe-haven Yen. If the USD weakens further and risk sentiment deteriorates, USD/JPY may extend its pullback toward key support levels.
USD/JPY Technical Analysis – Descending Channel
The 4-hour chart for USD/JPY shows that the pair is trading within a descending channel. The rebound from the support level 146.70 has reached resistance at $150.20. The pair has started to correct lower from this resistance area. If USD/JPY breaks below 146.70, the bearish trend will likely continue, pushing the pair toward $145.
