CFD Trading Rate US Dollar vs Japanese Yen (USDJPY)

• USD/JPY eyes February 7 low of 150.93 as downtrend resumes.
• RSI signals further weakness; potential drop to 148.64 if support breaks.
• Upside limited unless buyers reclaim 152.00 and 200-day SMA at 152.70.

The USD/JPY retreats during the North American session and trades below the 200-day Simple Moving Average (SMA) of 152.70 for the second consecutive trading day. Thin liquidity conditions due to a holiday in the United States (US) keep the pair trading subdued below the 151.50 mark.

USD/JPY Price Forecast: Technical outlook

The USD/JPY downtrend resumed on Monday, with the pair dropping below 152.00. Sellers are eyeing a test of the latest cycle low, reached on February 7 at 150.93, which, once cleared, could pave the way for a 200 pip fall to challenge the December 3 swing low of 148.64.

The Relative Strength Index (RSI) remains bearish, favoring a further USD/JPY downside.

Conversely, if USD/JPY climbs past 152.00, buyers could test the 200-day SMA at 152.70. On further strength, the next resistance would be 153.00, ahead of the Senkou Span B at 153.73.

USD/JPY Price Chart – Daily

• USD/JPY falls sharply to near 151.40 as Yen performs strongly across the board on upbeat Q4 Japan GDP data.
• Flash Q4 Japan’s GDP data showed that the economy expanded by 0.7%.
• A delay in Trump’s reciprocal tariff plan and poor Retail Sales data would keep the US Dollar on the backfoot.

The USD/JPY pair slumps to near 151.40 in Monday’s North American session. The asset tumbles as the Japanese Yen (JPY) strengthens across the board after the release of the flash Q4 Gross Domestic Product (GDP) data, which showed that the economy surprisingly expanded at a robust pace.

Japanese Cabinet Office reported that the economy expanded at a robust pace of 0.7%, against 0.4% growth seen in the third quarter of 2024. Economists expected the GDP data to have grown by 0.3%.

On an annualized basis, the economy rose strongly by 2.8% compared to the same quarter of the previous year and faster than the 1.7% growth seen in the July-September period. Upbeat GDP data is expected to boost the Bank of Japan's (BoJ) hawkish bets.

Meanwhile, the US Dollar (USD) finds ground temporarily after facing a sharp sell-off last week. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, gauges cushion near 106.60 after posting a fresh two-month low.

However, investors are cautious over the USD’s outlook as United States (US) President Donald Trump has not unveiled a detailed reciprocal tariff plan, while he was expected to do so on Thursday.

Above that, poor Retail Sales data for January has also weighed on the US Dollar. The Retail Sales data, a key measure of consumer spending, declined at a robust pace of 0.9%.

US Dollar (USD) is likely to edge lower vs Japanese Yen (USD), but it is unlikely to reach the major support at 151.00. In the longer run, upward momentum has largely faded; USD is likely to trade in a 151.00/155.00 range for the time being, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Upward momentum has largely faded

24-HOUR VIEW: "We indicated last Friday that 'the outlook is unclear after the sharp swings.' We expected USD to trade in a choppy manner between 152.00 and 154.00.' USD then traded in a 152.01/153.15 range, closing lower by 0.33% at 152.33. There has been a tentative buildup in downward momentum. Today, USD is likely to edge lower, but it is unlikely to reach the major support at 151.00 (there is another support level at 151.60. Resistance is at 152.50; a breach of 152.85 would indicate that the buildup in momentum has faded."

1-3 WEEKS VIEW: "There is not much to add to our update from last Friday (14 Feb, spot at 152.70). As noted, the recent 'upward momentum has largely faded.' For the time being, USD 'is likely to trade in a 151.00/155.00 range'."

USD/JPY extended its decline as stronger 4Q GDP print (2.8% QoQ, saar) solidified expectations for another BoJ hike to be in due course. USD/JPY was last seen at 151.71 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Slight risks to the downside in the interim

"There were also chatters of a 8% increase in wages for large Japanese bank, adding to the list that a handful of Japanese corporates are likely to see another year of wage increases, meeting one of BoJ’s pre-requisites for policy normalisation."

"Daily momentum is flat while RSI fell. Consolidation likely, with slight risks to the downside in the interim. Support at 151.50 (38.2% fibo retracement of Sep low to Jan high), 150 levels. Resistance at 152.70 (200 DMA), 153.40 (100 DMA) and 154.30 levels."

"Elsewhere, tariff concerns remain but it appears that Japan is attempting to seek exemptions with regards to Trump’s proposed reciprocal tariffs. Ministry of Foreign Affairs Takeshi Iwaya also raised the issue of automobile tariffs and sought exclusion from the 25% tariff on imported steel and aluminium products at the Munich Security Conference last Fri."

• The Japanese Yen attracts strong follow-through buying in reaction to the upbeat Q4 GDP.
• Optimism over the delay of Trump’s reciprocal tariffs provides an additional boost to the JPY.
• The USD languishes near a two-month low and further contributes to the USD/JPY pair’s slide.

The Japanese Yen (JPY) strengthened across the board following the release of a strong Gross Domestic Product (GDP) report, which showed that Japan’s economic growth blew past expectations in the fourth quarter. This comes on top of signs of broadening inflationary pressure in Japan and reaffirms market bets that the Bank of Japan (BoJ) will hike interest rates further, which, in turn, provides a goodish lift to the JPY. 

Apart from this, the optimism over a delay in US President Donald Trump's reciprocal tariffs and the narrowing of the US-Japan rate differential turn out to be other factors lending support to the lower-yielding JPY. The US Dollar (USD), on the other hand, languishes near a two-month low touched on Friday, which drags the USD/JPY pair lower for the third successive day, to the 152.75 region during the Asian session. 

Japanese Yen bulls retain control amid rising bets for additional BoJ rate hikes

• Data released earlier this Monday showed that Japan's economy expanded by 0.7% in the October-December quarter compared to the previous quarter's upwardly revised reading of 0.4%.
• The yearly growth rate accelerated from a revised 1.7% in the third quarter to 2.8%, which supports the Bank of Japan's plan to keep hiking rates amid signs of broadening inflation in Japan.
• Japan's Economy Minister Ryosei Akazawa said that he expects the economy to continue making a modest recovery, though he noted the need to be mindful of overseas economic downside risks.
• Tokyo-based Kyodo News reported on Sunday that Japan had asked to be exempted from US President Donald Trump's 25% tariffs on steel and aluminum, and the so-called reciprocal tariffs.
• This follows Trump’s order on Thursday to formulate plans for reciprocal tariffs on every country that imposes taxes on US imports, though he stopped short of announcing immediate levies. 
• This, along with the dismal US Retail Sales figures released on Friday, keeps the US Dollar depressed near its lowest level since December 17 and weighs on the USD/JPY pair.
• The US Census Bureau reported that Retail Sales declined by 0.9% in January, worse than the decrease of 0.1% expected and the 0.7% increase (revised from 0.4%) in December. 
• US Secretary of State Marco Rubio signaled on Sunday that talks with Russia this week were a chance to see how serious Russian President Vladimir Putin is about peace.
• Adding to this, Trump said that he was working hard to achieve peace and that he believed he could meet Putin very soon to discuss ending the protracted war in Ukraine. 

USD/JPY seems vulnerable while below the 200-day SMA, around 152.70 area

From current levels, the 151.45-151.40 area could offer immediate support ahead of the 150.95-150.90 region, or the lowest level since December 10 touched earlier this month. Given that oscillators on the daily chart are holding in negative territory, some follow-through selling would be seen as a fresh trigger for bearish traders. The USD/JPY pair might then accelerate the fall towards the 150.00 psychological mark en route to the 149.60-149.55 zone, the 149.00 round figure, and the December 2024 swing low, around the 148.65 region.

On the flip side, any meaningful recovery beyond the 152.00 mark might confront a strong hurdle near the 152.70 area, or the 200-day Simple Moving Average (SMA). This is followed by the 100-day SMA, currently pegged near the 153.15 region, which if cleared decisively could trigger a short-covering rally. The subsequent move up has the potential to lift the USD/JPY pair beyond the 154.00 round figure, towards the 154.45-154.50 supply zone en route to last week's swing high, around the 154.75-154.80 region.

• USD/JPY falls to 152.02, erasing February 12 gains as sellers take control.
• Bearish RSI signals further downside; key support at 150.93 and 148.64.
• A recovery above 152.73 could open the door to 153.22 and 154.00.

The USD/JPY extended its losses, dropping below the 200-day Simple Moving Average (SMA) of 152.73 and hitting a three-day low of 152.02. Worse than expected, US Retail Sales data weighed on the American currency, which has fallen to a year-to-date (YTD) low, according to the US Dollar Index (DXY). The pair trades at 152.26, below its opening price by 0.36%.

USD/JPY Price Forecast: Technical outlook

The downtrend resumed after the February 12 gains were erased during the last few days as sellers regained control. The Relative Strength Index (RSI) remains bearish, an indication that further downside lies ahead. Therefore, the USD/JPY's first support would be the February 7 swing low of 150.93, followed by the December 3 daily low of 148.64.

Conversely, if USD/JPY reclaims the 200-day SMA, the pair could aim for 153.00, followed by the Tenkan-sen at 153.22 and the 154.00 figure.

USD/JPY Price Chart – Daily

Outlook is unclear after the sharp swings; US Dollar (USD) could trade in a choppy manner between 152.00 and 154.00 against the Japanese Yen (JPY). In the longer run, upward momentum has largely faded; USD is likely to trade in a 151.00/155.00 range for the time being, OCBC's FX analysts Frances Cheung and Christopher Wong note.

USD is likely to trade in a 151.00/155.00 range

24-HOUR VIEW: "Following the surge in USD on Wednesday, we indicated yesterday (Thursday) that 'the rally appears to be overdone, and USD is unlikely to rise much further.' We held the view that USD 'is more likely to consolidate between 153.30 and 154.85.' We did not expect the subsequent price movements as after rising to a high of 154.66, USD plunged and gave up almost all of the previous day’s strong gains (low has been 152.68). The outlook for today is unclear after the sharp swings, and USD could continue to trade in a choppy manner, likely between 152.00 and 154.00."

1-3 WEEKS VIEW: "We highlighted yesterday (13 Feb, spot at 154.25) that 'while USD could continue to rise, deeply overbought conditions suggest that any advance may not reach the major resistance at 155.80.' We also highlighted that 'a breach of 152.50 would indicate that USD is not rising further.' In a surprising move, USD plunged and gave up most of its gains, reaching a low of 152.68. While our ‘strong support’ level at 152.50 has not been breached yet, upward momentum has largely faded. For the time being, USD is likely to trade in a 151.00/155.00 range."

USD/JPY fell sharply as reciprocal tariff delay led to a turnaround in UST yields. The pair was last seen at 152.60 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Consolidation likely in the interim

"USD/JPY fell, last at 152.60 levels. Daily momentum is flat while RSI fell. Consolidation likely in the interim. Support at 152.50/80 levels (100, 200 DMAs), 151.50 (38.2% fibo retracement of Sep low to Jan high), 150 levels. Resistance at 154.30, 155.30 levels (50 DMA)."

"We believe Japan may not be spared. When it comes to automobiles, Japanese cars are amongst the top 5 most popular in US and Korean cars make it to the top 10 list. On agricultural products, Japan has a high tariff rate of 204.3% for rice and 23.3% for meat."

"The risk is a direct tariff hit on Japanese goods and JPY may come under pressure in this scenario. In fact, Trump yesterday ordered his administration to consider imposing reciprocal tariffs on numerous trading partners, singling out Japan and South Korea as nations that he believes are taking advantage of the US."

• USD/JPY declines further to near 152.60 as the US Dollar underperforms its pears amid upbeat market mood.
• US Trump didn’t reveal its detailed reciprocal tariff plan on Thursday.
• The BoJ is expected to raise interest rates again.

The USD/JPY pair falls further to near 152.60 in Friday’s European session. The asset weakens as the US Dollar (USD) underperforms across the board amid cheerful market mood.

Investors turn to risky assets as United States (US) President Donald Trump didn’t unveil the concrete reciprocal tariff plan on Thursday and asked treasury, commerce chiefs to work on reciprocity. However, market participants anticipated that Trump would reveal a detailed reciprocal tariff plan immediately. This scenario has eased fears of an immediate global trade war.

The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, revisits an almost four-week low around 106.80.

Despite easing safe-haven appeal of the US Dollar in the current scenario, its outlook remains firm as investors expect the Federal Reserve (Fed) keep interest rates at their current levels for longer. Fed Chair Jerome Powell said in his two-day testimony before the Congress that the central bank can maintain “policy restraint for longer” if economy remains strong and “inflation does not move toward 2%."

Meanwhile, the Japanese Yen (JPY) is also underperforming its peers, except the US Dollar, even though traders have become increasingly confident that the Bank of Japan (BoJ) will continue tightening the monetary policy.

BoJ hawkish bets have been prompted by inflationary pressures remaining above the 2% target for longer and firm expectations that wages will increase further.

• USD/JPY struggled after President Trump's delay of reciprocal tariffs.
• The US Dollar weakens as US yields decline across the curve.
• Japan's Economy Minister Ryosei Akazawa stated that authorities will take appropriate action regarding US reciprocal tariffs.

USD/JPY remains steady after registering losses in the previous session, trading around 152.60 during the Asian hours on Friday. The pair faced challenges following US President Donald Trump’s decision to postpone the implementation of reciprocal tariffs. Additionally, the US Dollar (USD) weakens amid falling US yields across the curve, despite ongoing concerns about a global trade war. Investors now await the release of US Retail Sales data later in the day.

The US Dollar Index (DXY), which measures the US Dollar’s value against six major currencies, extends its losses for the fourth successive session. The DXY trades around 107.00 with 2-year and 10-year yields on US Treasury bonds standing at 4.31% and 4.53%, respectively, at the time of writing.

Core PPI inflation in the United States (US) rose to 3.6% YoY in January, exceeding the expected 3.3% but slightly below the revised 3.7% (previously reported as 3.5%). This has reinforced expectations that the Federal Reserve (Fed) will delay rate cuts until the second half of the year. Additionally, persistently strong inflation could further support the outlook for the Fed to keep interest rates at 4.25%-4.50% for an extended period.

On Friday, Japan's Economy Minister Ryosei Akazawa stated that the authorities will respond appropriately to US reciprocal tariffs. Akazawa further stated that the weak Japanese Yen (JPY) has a variety of impacts on Japan's real economy.

The Japanese Yen (JPY) gained support following Thursday’s release of stronger-than-expected Producer Price Index (PPI) data from Japan, reinforcing expectations of further rate hikes by the Bank of Japan (BoJ). The data highlights expanding inflationary pressures in Japan, further supported by recent wage growth figures, strengthening the case for additional BoJ rate hikes.

• USD/JPY dives to near 153.40 amid significant strength in the Japanese Yen.
• Investors remain on their toes as US Trump reiterates reciprocal tariff threats.
• The Fed stated that a restrictive policy stance is favorable if progress in the disinflation trend stalls.

The USD/JPY pair falls sharply to near 153.40 in Thursday’s North American session from its weekly high of 154.80, which it posed on Wednesday. The asset weakens as second-level safe-haven assets, such as the Japanese Yen (JPY) and the Swiss Franc (CHF), perform strongly across the board.

The safe-haven bid of the JPY and the CHF strengthens amid worries that the imposition of reciprocal tariffs by United States (US) President Donald Trump will lead to a global trade war. Trump reiterated reciprocal tariff threats in early North American trading hours through a post on Truth Social.

"Three great weeks, perhaps the best ever, but today is the big one: reciprocal tariffs!!! Make America great again!!!," Trump said.

Contrary to strength in the JPY and the CHF, the US Dollar (USD) faces selling pressure on optimism over a truce between Russia and Ukraine. Donald Trump announced on Wednesday that leaders of both nations had agreed to peace talks.

The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, has recovered some of its morning losses but is still down 0.15% to near 107.80.

Meanwhile, the outlook for the US Dollar remains firm as hot US Consumer Price Index (CPI) and Producer Price Index (PPI) reports for January have boosted expectations that the Federal Reserve (Fed) will keep interest rates in the current range of 4.25%-4.50% for longer.

Fed Chair Jerome Powell said in his two-day testimony before Congress that the central bank can maintain “policy restraint for longer” if the economy remains strong and “inflation does not move toward 2%."

(This story was corrected on February 13 at 14:46 to say that the US Dollar Index (DXY) has recovered some of its morning losses, not some of its morning gains.)

US Dollar (USD) is likely to consolidate between 153.30 and 154.85. USD could continue to rise; overbought conditions suggest that any advance may not reach 155.80, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

USD can continue to rise vs the JPY

24-HOUR VIEW: "While we expected USD to 'rise further' yesterday, we highlighted that 'the major resistance at 154.35 is unlikely to come under threat.' USD rose but remained below 154.35 until NY trade, when it surged to 154.79. USD closed on a strong note at 154.41, gaining 1.27%. The rally appears to be overdone, and USD is unlikely to rise much further. Today, USD is more likely to consolidate between 153.30 and 154.85."

1-3 WEEKS VIEW: "We revised our view from negative to neutral yesterday (12 Feb, spot at 152.95), indicating that 'downward pressure has eased.' We added, USD 'is likely to trade in a 151.40/154.35 range for the time being.' The subsequent strong surge that sent USD to a high of 154.79 was surprising. While USD could continue to rise, deeply overbought conditions suggest that any advance may not reach the major resistance at 155.80. On the downside, a breach of 152.50 would indicate that USD is not rising further."

• USD/JPY jumps over 1%, breaking 153.00 and 154.00 resistance levels.
• Hot US inflation fuels Treasury yield surge, boosting dollar strength.
• Technical outlook: Bulls eye 155.26, but key support lies at 153.00.

The USD/JPY rallied sharply on Wednesday after a hot US inflation report spurred a jump in the US 10-year Treasury yield, closely correlated with the major. Hence, the pair aimed higher, clearing the 153.00 and 154.00 figures on their way toward current spot prices, near 154.50.

USD/JPY Price Forecast: Technical outlook

The USD/JPY enjoyed an over 1% rally on Wednesday after clearing the 200-day Simple Moving Average (SMA) at 152.76, opening the door for further upside. Despite this, the pair found stir resistance at the Kijun-sen at 154.90 before consolidating near the 154.50 area,

Despite this, the pair is neutral to downward biased after registering a successive series of lower highs and lower lows. If bulls want to regain control, the USD/JPY must clear the 50-day SMA at 155.26, followed by the latest cycle high of 155.89.

On the other hand, a drop below 154.00 would expose the Senkou Span B at 153.76, followed by the 153.00 figure and the 200-day SMA at 152.76.

USD/JPY Price Chart – Daily

• USD/JPY extends its daily uptrend, trades above 154.00 in the American session.
• Annual CPI inflation in the US rose to 3% in January.
• The benchmark 10-year US Treasury bond yield is up about 2% on the day.

USD/JPY gathered bullish momentum in the early American session on Wednesday and reached a fresh weekly high near 154.50. At the time of press, the pair was up 1.2% on the day at 154.32.

Hot US inflation data boosts USD

The US Dollar (USD) outperforms its rivals and helps USD/JPY push higher following the January inflation data. 

The US Bureau of Labor Statistics reported that the Consumer Price Index (CPI) rose 3% on a yearly basis in January, above the market expectation and December's increase of 2.9%. Additionally, the core CPI, which excludes volatile food and energy prices, increased 0.4% on a monthly basis.  

Reflecting the broad-based USD strength, the USD Index is up 0.5% on the day near 108.50. Additionally, the benchmark 10-year US Treasury bond yield rises nearly 2% on the day above 4.6%, further supporting the USD.

Later in the day, the US Treasury will hold a 10-year note auction. Meanwhile, market participants will keep a close eye on headlines surrounding US President Donald Trump tariff policy.

• USD/JPY climbs to near 154.00 amid weakness in the Japanese Yen.
• BoJ Ueda cautioned about rise in food prices that could stimulate inflation expectations.
• Investors await the US CPI data for fresh cues about the Fed’s monetary policy outlook.

The USD/JPY pair jumps to near 154.00 in Wednesday’s European session on extending its winning streak for the third trading day. The asset performs strongly as the Japanese Yen (JPY) continues to face selling pressure even though market participants have become increasingly confident that the Bank of Japan (BoJ) will maintain a hawkish monetary policy stance going ahead.

BoJ hawkish bets have escalated as BoJ Governor Kazuo Ueda has cautioned about an expected increase in food prices.

Earlier in the day, Kazuo Ueda warned that rise in prices of food, including fresh food, could accelerated consumer inflation expectations. "Rises in the prices of food, including fresh food, won't necessarily be temporary and there's the chance that this will impact people's mindsets and price expectations," Ueda said, Reuters report.

Meanwhile, the US Dollar (USD) is broadly sideways, with the US Dollar Index (DXY), wobbling around 108.00. The USD consolidates as investors await the United States (US) Consumer Price Index (CPI) data for January, which will be published at 13:30 GMT.

Investors will pay close attention to the US inflation data as it will influence speculation for how long the Federal Reserve (Fed) will keep interest rates steady in the range of 4.25%-4.50%.

The CPI report is expected to show that the core inflation – which excludes volatile food and energy prices – decelerated to 3.1% from 3.2% in December, with the headline CPI remaining steady at 2.9%.

USD/JPY continued to trade higher, in line with our near-term caution about the reciprocal tariff uncertainty. USD/JPY was last seen at 153.45 levels, UOB Group's FX analysts Quek Ser Leang and Peter Chia note. 

Rebound risks likely in the interim

"Bearish momentum on daily chart intact but shows signs of fading while RSI is turning higher from near oversold conditions. Rebound risks likely in the interim. Resistance at 155.20 levels (50 DMA). Support at 152.70/80 levels (100, 200 DMAs), 151.50 (38.2% fibo retracement of Sep low to Jan high), 150 levels." 

"As a recap, Trump mentioned that reciprocal tariff will be applied on all nations, and we believe Japan may not be spared. When it comes to automobile, Japanese cars are amongst the top 5 most popular in US and Korean cars are on the top 10 list. On agricultural products, Japan has a high tariff rate of 204.3% for rice and 23.3% for meat." 

"The risk is a direct tariff hit on Japanese goods and JPY may come under pressure in this scenario."

US Dollar (USD) could rise further to 153.65; the major resistance at 154.30 is unlikely to come under threat. In the longer run, downward pressure has eased; USD is likely to trade in a 151.40/154.35 range for the time being, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.  

USD is likely to trade in a 151.40/154.35 range

24-HOUR VIEW: "In early Asian trading yesterday, we indicated that 'the price action still appears to be part of a range trading phase, probably between 151.30 and 152.35.' USD traded in a 151.63/152.60 range, closing at 152.48 (+0.32%). It rose sharply in early Asian trade today. Although upward momentum is building rapidly, the advance appears to be running ahead of itself. That said, provided that 152.30 (minor support is at 152.60) is not breached, USD could rise further to 153.65. The major resistance at 154.35 is unlikely to come under threat." 

1-3 WEEKS VIEW: "We turned negative in USD last Thursday (06 Feb, spot at 152.60). On Friday (07 Feb, spot at 151.10), we pointed out that “USD outlook remains negative, and the level to monitor is 150.00.” USD rebounded over the past couple of days, and today, it breached our ‘strong resistance’ level at 153.00. The breach of the ‘strong resistance’ level means that downward pressure has eased. The current price movements are likely part of a range trading phase. For the time being, we expect USD to trade in a 151.40/154.35 range."

• USD/JPY rebounds 0.35% from 151.64 low, driven by bond yield movements.
• Technical analysis hints at bullish shift; resistance near 200-day SMA at 152.76.
• Downside risks if SMA not surpassed; supports at 152.00 and 150.93 in focus.

The USD/JPY climbed during the North American session. It trades at 152.52 and posts gains of over 0.35% after hitting a daily low of 151.64. The rise of the US 10-year T-note bond yield spurred the rise of the pair, which is positively correlated to the yield of the 10-year.

USD/JPY Price Forecast: Technical outlook

The USD/JPY remains biased downward, even though buyers could challenge the 200-day Simple Moving Average (SMA) at 152.76. The momentum shifted slightly bullish even though the relative strength index (RSI) remains bearish, and the slope aims upwards.

If buyers regain the 200-day SMA, the following key resistance would be the 153.00 mark before testing the Senkou Span B base at 153.76.

On the other hand, if USD/JPY stays below the 200-day SMA, the first support would be the 152.00 figure. Further losses lie below the February 7 daily low of 150.93, followed by the December 3 swing low of 148.64.

USD/JPY Price Chart – Daily

• USD/JPY trades sideways around 152.00 as Fed Powell’s testimony takes center stage.
• Fed Powell is unlikely to provide cues about the timeline from when the central bank could resume the policy expansion cycle.
• Yen’s rally appears to have stalled, which was based on BoJ's hawkish bets.

The USD/JPY pair inches higher to near 152.00 in Tuesday’s European session but trades inside Monday’s trading range, which suggests a sideways trend. The pair consolidates as investors await Federal Reserve (Fed) Chair Jerome Powell’s testimony before Congress at 15:00 GMT.

Investors will look for cues about how long the Fed will hold interest rates in the current range of 4.25%-4.50%. Jerome Powell is not expected to provide any timeline about when the Fed could resume its policy-easing cycle, which it paused in January.

In the January meeting, Jerome Powell said that monetary policy adjustments would become appropriate only after policymakers see “real progress in inflation or at least some weakness in the labor market”.

Investors would also like to know the impact of the 25% tariff imposition on imports of steel and aluminum by United States (US) President Donald Trump, which will come into effect on March 12, on inflation and the economy. While, Powell will likely say that it is too early to project.

However, market participants expect that Trump’s tariffs agenda will be inflationary for the US economy.

Meanwhile, a month-long upside move in the Japanese Yen (JPY) appears to have paused for a while. The Japanese Yen remained firm in January on expectations that the Bank of Japan (BoJ) is on track to narrow rate differentials with other central banks. BoJ Governor Kazuo Ueda and Deputy Governor Himino have signaled the possibility of another interest rate hike if the economy and prices perform in line with the central bank's projections.