USD/JPY Price Forecast: Hammer teases rebound after 650-pip slide
U.S. and Canada failed to reach a deal and raised tariffs.
Yen strength drives USD/JPY lower as 152 comes into view
USDJPY managed to resume the drop as traders anticipate a rate hike from the Bank of Japan next week. The market faces support around the 152.00-15 zone while resistance at 155.00-20 could lead to a trading zone here.
The yen has continued to gain relevance during recent trading sessions and, over the last four trading days, USD/JPY has declined by nearly 3.6%, highlighting the strength currently being displayed by the Japanese currency against the U.S. dollar. This selling pressure has remained in place as markets continue digesting recent updates regarding Japan's currency interventions while also maintaining expectations of a more aggressive Bank of Japan.
The Japanese yen is in a strong uptrend this week, reaching its highest level since February this year. The USD/JPY pair dropped to 154.28, down by nearly 6% from its highest level this year.
Japanese yen rallies as traders bet on BoJ rate hike.
AUD/USD remains supported near 0.72 while NZD/USD continues to show relative weakness. USD/JPY faces the most critical setup, falling below its 200-day EMA and threatening major support as US CPI approaches.
USD/JPY outlook: Japanese yen extends gains, hits the highest in over six months
USDJPY resumed the drop to test the support at 155.00-20 again last week. As we see over the chart, the support at 155.00-20 could lead to a rebound with resistance at 157.40.
USD/JPY Price Forecast: Fresh downside leg expected below 155.00
Goldman sees USD/JPY falling to 140-145, while Crédit Agricole forecasts a rebound to 163 by December. The US Dollar to Japanese Yen (USD/JPY) exchange rate ended Friday near 156.25 following one of its sharpest weekly reversals of 2026.