Will USDJPY Continue to Fall to 140.00 to 130.00 Range?

Over the past week, the US dollar showed signs of initial strength but has since experienced a notable decline. This weakening is primarily attributed to growing market expectations surrounding a potential 50-basis point rate cut by the Federal Reserve.

Over the past week, the US dollar showed signs of initial strength but has since experienced a notable decline. This weakening is primarily attributed to growing market expectations surrounding a potential 50-basis point rate cut by the Federal Reserve. The speculation intensified following a recent report suggesting that the Federal Open Market Committee (FOMC) could opt for a more aggressive cut than previously anticipated. As a result, the USD has come under pressure, particularly in its exchange rate against the Japanese yen (USD/JPY). I’m now believe that USDJPY may settle into a lower trading range, potentially hovering between 130.00 and 140.00, should the Federal Reserve proceed with the projected rate cut.

DXY 4H Chart

 Source: TradingViewWhile the Federal Reserve's rate decision remains at the forefront of market attention, the Bank of Japan (BoJ) is expected to stay on its path of incremental rate increases. Recent figures released by Japan’s Ministry of Finance highlight evolving trends in Japanese investor behaviour. Notably, there was significant selling of European bonds during July, largely driven by political uncertainties within the Eurozone. However, a shift occurred in August, when Japanese investors made a decisive return to foreign bond markets. This was marked by a record-breaking surge in the purchase of overseas bonds, spearheaded by banks and trusts.

USDJPY Chart 

 Source: Finlogix ChartsThis renewed bond buying activity, coupled with potential unhedged foreign investments, signals ongoing strength in the Japanese yen. Additionally, market participants have been scaling back on short positions, further supporting the yen's upward momentum. Looking ahead, should the Federal Reserve implement the anticipated larger rate cut, the yen's appreciation is likely to persist, adding downward pressure on the USD/JPY exchange rate. The Bank of Japan's upcoming policy meeting is expected to reaffirm its commitment to gradual rate hikes, which could further bolster the yen soon.

This content may have been written by a third party. ACY makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplies by any third-party. This content is information only, and does not constitute financial, investment or other advice on which you can rely.

read more
Global markets on March 13, 2025, shaped by a subdued US Dollar and escalating concerns over a potential trade war

Global markets on March 13, 2025, shaped by a subdued US Dollar and escalating concerns over a potential trade war

Global markets on March 13, 2025, are shaped by a subdued US Dollar and escalating concerns over a potential trade war, driven by new tariffs under the Trump administration. Investors are adopting a cautious stance, with safe-haven assets gaining traction and attention turning to the upcoming US Producer Price Index (PPI) inflation data, which could steer market direction later today.
Moneta Markets | 5時1分前
Global markets on March 13, 2025, shaped by a subdued US Dollar and escalating concerns over a potential trade war

Global markets on March 13, 2025, shaped by a subdued US Dollar and escalating concerns over a potential trade war

Global markets on March 13, 2025, are shaped by a subdued US Dollar and escalating concerns over a potential trade war, driven by new tariffs under the Trump administration. Investors are adopting a cautious stance, with safe-haven assets gaining traction and attention turning to the upcoming US Producer Price Index (PPI) inflation data, which could steer market direction later today.
Moneta Markets | 5時2分前
ATFX Market Outlook 13th March 2025 

ATFX Market Outlook 13th March 2025 

U.S. CPI data for February increased by 0.2% month-on-month, marking a slower pace of inflation as falling airfares partially offset the rise in housing costs. The weaker-than-expected inflation reading gives the Federal Reserve more room to maintain interest rates unchanged next week while evaluating the economic impact of ongoing trade tensions.
ATFX | 12時0分前
Japanese yen declines: temporary pause amid strong long-term outlook

Japanese yen declines: temporary pause amid strong long-term outlook

USD/JPY climbed to 148.19 on Wednesday, marking its second consecutive session of gains after touching a low of 146.53, its weakest level since 4 October 2024. While this movement partly resembles a technical rebound, broader market conditions appear to shift, influencing the yen’s trajectory.
RoboForex | 1日前
USD/JPY hopes for some recovery

USD/JPY hopes for some recovery

USDJPY aims for a rebound after hitting five-month low Recovery could be short-lived within the bearish channel US CPI inflation data due at 12:30 GMT
XM Group | 1日前
ATFX Market Outlook 12th March 2025 

ATFX Market Outlook 12th March 2025 

U.S. stock futures rose slightly after a sharp sell-off on Wall Street, reflecting cautious optimism amid ongoing trade policy uncertainties. The Dow fell 1.1%, the S&P 500 dropped 0.76%, and the Nasdaq decreased by 0.18%. Notably, the S&P 500 experienced its largest two-day decline since early August, losing over 3.4%.
ATFX | 1日前
ATFX Market Outlook 10th March 2025 

ATFX Market Outlook 10th March 2025 

In February, the U.S. added 151,000 nonfarm payrolls, below the 160,000 estimates, with the unemployment rate rising to 4.1%. Average hourly earnings increased by 0.3% month-over-month. Fed Chairman Powell indicated no rush for interest rate cuts, citing potential tariff inflation.
ATFX | 2日前