USDJPY Analysis: Hike expectations boost the yen

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USDJPY for FEB 6, 2025.

Fundamental Analysis of USDJPYUSDJPY Key Takeaways

  • US data: US ISM non-manufacturing PMI for January was 52.8, significantly lower than the expected 54.3 and the previous value of 54.1. US ADP employment in January was 183,000, the highest since October last year, and the market expected 150,000.
  • Rate hike expectations support the yen: The yen rebounded against all major currencies after better-than-expected wage data in Japan supported the Bank of Japan’s case for continued rate hikes. Bank of Japan board member Naoki Tamura said today that the Bank of Japan must raise interest rates to at least 1% in the second half of fiscal 2025, and the risk of rising prices will increase.

Technical Analysis of USDJPY Daily and Hourly ChartsUSDJPY Daily Chart Insights

(USDJPY Daily Price Chart, Source: Ultima Markets MT4)

  • Stochastic oscillator: After the indicator lingered below the 50 median line for a period of time, it sent out a short signal again. The clear downward trend suggests that the short-term short force has the upper hand, and investors should pay attention to the appreciation of the yen.
  • Support price: Yesterday, USD/JPY quickly fell to the green 200-day MA. Theoretically, there is a probability of rebound in the Asian session. Then the next target should be 151.171.

USDJPY 1-hour Chart Analysis

(USDJPY H1 Price Chart, Source: Ultima Markets MT4)

  • Stochastic oscillator: Yesterday, the indicator diverged from the bottom twice in a row. The exchange rate rebounded during the Asian session today, but the indicator still did not rise above the 50 median line. Investors need to be alert to the possibility of continued rebound during the Asian session.
  • Rebound TARGET: If USD/JPY continues to rebound, the first target will be the purple 13-period MA. If the exchange rate continues to break through the key resistance level of 152.761, the second target of the yen rebound will be the black 65-period MA.

Pivot Indicator Insights for USDJPY

(USDJPY M30 Price Chart, Source: Ultima Markets APP)

  • According to Pivot Indicator in Ultima Markets APP, the central price of the day is established at 153.10,
  • Bullish Scenario: Bullish sentiment prevails above 153.10, first target 153.65, second target 154.20;
  • Bearish Outlook: In a bearish scenario below 153.10, first target 151.70, second target 151.30.

How to Navigate the Forex Market with Ultima Markets To navigate the complex world of trading successfully, it’s imperative to stay informed and make data-driven decisions. Ultima Markets remains dedicated to providing you with valuable insights to empower your financial journey.

For personalized guidance tailored to your specific financial situation, please do not hesitate to contact Ultima Markets.

Join Ultima Markets today and access a comprehensive trading ecosystem equipped with the tools and knowledge needed to thrive in the financial markets.

Stay tuned for more updates and analyses from our team of experts at Ultima Markets.

—–

Legal Documents

Ultima Markets, a trading name of Ultima Markets Ltd, is authorized and regulated by the Financial Services Commission “FSC” of Mauritius as an Investment Dealer (Full-Service Dealer, excluding Underwriting) (license No. GB 23201593). The registered office address: 2nd Floor, The Catalyst, 40 Silicon Avenue, Ebene Cybercity, 72201, Mauritius.

Copyright © 2025 Ultima Markets Ltd. All rights reserved.

Disclaimer  

Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided. 

Regulation: FSC (British Virgin Islands), CySEC (Cyprus), FSCA (South Africa)
read more
ATFX Market Outlook 4th July 2025

ATFX Market Outlook 4th July 2025

The U.S. economy added 147,000 jobs in June, beating expectations of 110,000, while the unemployment rate fell to 4.1%. Traders are now betting that the Fed is unlikely to cut rates before September. Meanwhile, the House narrowly passed Trump's major fiscal bill by a vote of 218 to 214. U.S. stocks rallied on Thursday, hitting fresh record highs.
ATFX | 1 day ago
Rate Shifts Steer FX Markets as Silver Holds Strong

Rate Shifts Steer FX Markets as Silver Holds Strong

On July 3, silver stays firm above $35.40 as Fed cut bets persist. EUR/USD holds near 1.1800, while GBP/USD lingers near 1.3585 ahead of UK jobs data. JPY strengthens after BoJ signals a hawkish pause. AUD/USD slips on weak trade surplus. Focus turns to US NFP and ISM data for market direction before the US holiday break.
Moneta Markets | 2 days ago
ATFX Market Outlook 3rd July 2025

ATFX Market Outlook 3rd July 2025

Wednesday’s ADP report showed a surprise decline of 33,000 private-sector jobs in June, marking the first contraction since March 2023 as economic uncertainty weighed on hiring. U.S. equities surged, with the S&P 500 and Nasdaq closing at record highs, driven by gains in tech stocks and relief following the U.S.–Vietnam trade agreement, which eased concerns over prolonged trade tensions
ATFX | 2 days ago
Dollar Rebounds, Risk FX Holds Strong | 2nd July, 2025

Dollar Rebounds, Risk FX Holds Strong | 2nd July, 2025

On July 2, the USD stabilizes as Fed rate cut bets build. GBP/USD nears 1.3750 highs, NZD/USD extends above 0.6120, and AUD/USD holds near 0.6820 despite soft retail sales. USD/JPY recovers to 146.20, while silver dips below $36. Markets await US labor data and Fed remarks for direction ahead of July 4.
Moneta Markets | 3 days ago
ATFX Market Outlook 2nd July 2025

ATFX Market Outlook 2nd July 2025

Fed Chairman Powell emphasised the need for more data before considering interest rate cuts, with a July cut still a possibility. On Tuesday, the Nasdaq and S&P 500 closed lower due to weakness in large tech stocks, with the Nasdaq down 0.82% and the S&P 500 down 0.11%. In contrast, the Dow rose by 0.91% amid volatile trading and low liquidity.
ATFX | 3 days ago
WTI Slides as Geopolitical Risks Ease | 1st July, 2025

WTI Slides as Geopolitical Risks Ease | 1st July, 2025

WTI dips below $64.50 as Middle East tensions ease, dampening supply fears. Silver struggles under $36, while AUD and NZD stay muted on weak China PMI. USD/JPY steadies near 145.90, and the yen holds gains on USD weakness. Traders now eye US ISM PMI and Fed minutes for clues on policy and market direction.
Moneta Markets | 4 days ago
US500, EURUSD, USDJPY

US500, EURUSD, USDJPY

New record high for US 500 amid relief rally; Eurozone preliminary CPI to be within ECB’s target; EURUSD hits 4-year high; US NFP report the highlight of the week; USDJPY eases
XM Group | 5 days ago
Oil Rises, Dollar Stalls as Risk Appetite Builds | 27th June, 2025

Oil Rises, Dollar Stalls as Risk Appetite Builds | 27th June, 2025

WTI crude nears $75 on strong US inventory draw, boosting risk sentiment. The US Dollar remains weak amid Fed independence fears, lifting AUD/USD to 0.6880 and EUR/USD near 1.1700. USD/JPY retreats while USD/CNY stays steady on a firmer PBOC fix. Focus shifts to US PCE data and global central bank commentary.
Moneta Markets | 8 days ago