17.02.202513:47 Forex Analysis & Reviews: USD/JPY – Analysis and Forecast

The Japanese yen is experiencing strong intraday gains today, primarily driven by a positive GDP report confirming Japan's economic growth. This reinforces expectations that the Bank of Japan (BoJ) may soon raise interest rates, boosting demand for the yen.

Additionally, the narrowing interest rate differential between the U.S. and Japan is further supporting the yen's appreciation. Amid the prevailing U.S. dollar selling pressure, USD/JPY remains under pressure, hovering just above the 151.00 level.

However, concerns over potential retaliatory tariffs by the U.S. may limit aggressive yen buying. Furthermore, market expectations that the Federal Reserve may maintain its hawkish stance are helping to prevent excessive U.S. dollar losses, creating obstacles for a sustained USD/JPY decline.

Still, the fundamental outlook remains in favor of yen bulls, suggesting that the path of least resistance for USD/JPY is downward.

Technical Outlook & Key Levels

Support at 151.45 is currently holding. However, with daily oscillators in negative territory, further selling pressure could trigger a new bearish move. A break below 151.00 may accelerate the decline toward the psychological support level at 150.00 and potentially lower.

On the other hand, any recovery above 152.00 may face resistance near 152.70, where the 200-day Simple Moving Average (SMA) is located. A breakout above this level could trigger a rally, pushing USD/JPY beyond the 154.00 psychological barrier toward the 154.45–154.50 supply zone and last week's swing high at 154.80.

Market Performance of the Japanese Yen

The yen has shown the strongest performance against the euro today, as indicated by the percentage change table tracking its movement against major currencies.