Yen Weakens Amid Fed Rate Expectations and Bank of Japan Signals

The USD/JPY pair climbed to 147.67 on Monday as the Japanese yen underwent a correction following Friday’s volatile trading session, with investors closely monitoring macroeconomic developments.

Market focus remains on shifting US Federal Reserve policy expectations after the release of softer labour market data. Although Friday’s report bolstered predictions of a rate cut, Fed officials have maintained a cautious tone, citing persistent inflation risks. Proposed large-scale tariffs from US President Donald Trump have further amplified these concerns.

Against this backdrop, the US dollar has partially regained strength, exerting downward pressure on the yen.

Investors are now awaiting the release of the Bank of Japan (BoJ) meeting minutes, hoping for clues on the timing of a potential rate hike. Last week, the Japanese central bank left interest rates unchanged but raised its inflation forecast and highlighted growing uncertainty due to global trade risks.

Overall, the outlook for the JPY remains subdued. The BoJ has ample room to delay rate hikes, justifying its stance with ongoing caution.

Technical Analysis: USD/JPY

H4 Chart:

On the H4 chart, USD/JPY completed an upward wave to 150.90 before entering a correction phase. A further decline towards 146.52 is anticipated today. Once this level is reached, the pair may initiate a new growth wave, potentially targeting 151.00, with a longer-term prospect of extending the trend to 153.10. This scenario is supported by the MACD indicator, where the signal line remains above zero but is trending sharply downward.

H1 Chart:

On the H1 chart, USD/JPY is forming a corrective structure towards 146.52. A temporary rebound to 148.70 (testing from below) is expected today, followed by a possible resumption of the correction to 146.52. Once this correction concludes, a fresh upward wave towards 151.00 could materialise. The Stochastic oscillator validates this outlook, with its signal line positioned above 50 and pointing upwards.

Conclusion

The yen remains under pressure amid shifting Fed expectations and cautious BoJ signals. Technically, USD/JPY is poised for further correction before potentially resuming its uptrend.

DisclaimerAny forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.

RoboForex
Type: STP, ECN, Market Maker
Réglementation: FSC (Belize)
read more
Forex goes to safe havens

Forex goes to safe havens

• The shutdown may end soon. • Increased volatility supports the dollar. • The Bank of Japan recalls deflation. • The pound is frightened by tax increases.
FxPro | il y a 22h 1min
Forex goes to safe havens

Forex goes to safe havens

• The shutdown may end soon. • Increased volatility supports the dollar. • The Bank of Japan recalls deflation. • The pound is frightened by tax increases.
FxPro | il y a 22h 1min
ATFX Market Outlook 5th November 2025

ATFX Market Outlook 5th November 2025

U.S. Senate failed to pass a temporary funding bill once again on Tuesday, setting the stage for a government shutdown that will soon surpass the 35-day record from late 2018 to early 2019. Wall Street closed sharply lower as major banks warned of potential corrections, reflecting growing concerns over stretched valuations.
ATFX | il y a 23h 58min
The euro holds on by a thread

The euro holds on by a thread

• The US is poised for a record shutdown. • Weak PMI data halted the dollar. • Rumours of intervention strengthened the yen. • Slowing inflation weakened the franc.
FxPro | il y a 1
ATFX Market Outlook 4th November 2025

ATFX Market Outlook 4th November 2025

Gold prices steadied, hovering around the key $ 4,000-per-ounce mark amid a lack of clear direction. Traders are awaiting U.S. private-sector employment data later this week for further cues. Oil prices steadied as markets balanced OPEC+’s latest production increases against reports that the group may pause additional output hikes in the first quarter of 2026.
ATFX | il y a 2
USDPJY, AUDUSD, GBPUSD

USDPJY, AUDUSD, GBPUSD

Fed speakers and ADP data in focus; USDJPY near 8-month high; RBA to hold rates at 3.60%; AUDUSD under pressure; BoE likely to stand pat; GBPUSD weak, eyes 6½ -month low
XM Group | il y a 2
ATFX Market Outlook 3rd November 2025

ATFX Market Outlook 3rd November 2025

U.S. equities ended higher on Friday, led by Amazon’s upbeat earnings forecast, though investor optimism was tempered by renewed caution from several Federal Reserve officials. For the week, the S&P 500 rose 0.7%, the Nasdaq gained 2.24%, and the Dow added 0.75%. Several Fed hawks voiced opposition to further rate cuts, citing persistent inflation risks, which boosted the U.S. Dollar Index
ATFX | il y a 2