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VT 
The USD/JPY saw an increase as the US Dollar gained strength after the Federal Reserve maintained interest rates. Optimism around US-UK trade was further fuelled by a “major breakthrough” in trade relations, promoting positive market sentiment. However, a 10% tariff on UK goods will remain, which could dampen initial enthusiasm.
The US Dollar Index surpassed 100.00, bolstered by economic data and the Federal Reserve’s policies. Weekly jobless claims dropped to 228K, indicating continued strength in the US labour market. Meanwhile, the Bank of Japan showed concern about US tariffs impacting Japan’s economy, driving preference for the USD over the JPY.
Technical Analysis Of Usd Jpy
Technically, the USD/JPY is in a bullish pattern, trading around 146.00 with resistance at 146.18. The RSI is at 54.16, indicating neutrality, with the MACD showing a buy signal. Short-term moving averages suggest a bullish trend, while long-term resistance could limit further gains. Key support levels are noted at 144.78, 144.63, and 144.56.
The USD/JPY could climb further if it stays above these support levels, with market participants watching US economic data and geopolitical developments for potential market shifts.
We’re now entering a period where the US Dollar is asserting itself more forcefully against the Japanese Yen, and that’s mostly down to the mix of unchanged rates and closer trade cooperation, particularly between the US and UK. Notably, traders are seeing strength across the board for the Dollar, thanks to a batch of data suggesting the job market in the US still isn’t showing signs of fatigue. Weekly jobless claims dipped to 228,000—another step down, reinforcing the robust picture painted by recent economic indicators.
Labour resilience like this often supports tighter monetary policy or at least keeps the door closed to cuts, and that’s typically friendly to the Dollar. The Federal Reserve staying on hold offers a clear signal: stability in its course, for now, is more beneficial than pushing for any new direction. Tariffs on UK goods continue to hang in the background—annoying for Britain but a lesser concern for Dollar strength in the near term. That said, this isn’t something to dismiss altogether; rather, we should keep one eye on the impact of these measures as they could swing sentiment with little warning.
On the Japanese side, concern is growing. The Bank of Japan appears increasingly uneasy about the potential for US tariffs to crimp growth or investment confidence. That sort of backdrop nudges investors toward safer, yield-soaked assets in the Dollar domain, especially while the Bank of Japan keeps its policies loose. The result is a more decisive tilt toward the USD in this pairing.
Monitoring Market Conditions
From a technical perspective, the setup is leaning toward a bullish continuation. Prices hovering at 146.00 with resistance at 146.18 show there’s still room upwards, though not unlimited. We’re watching closely to see if buying stiffens near that resistance zone. The short-term moving averages align with further upside, but upcoming moves will depend on whether that top resistance breaks convincingly or not.
The RSI at 54.16 tells us price momentum isn’t stretched in any direction yet—not overbought, not oversold—so there’s room to breathe. We also notice the MACD is giving a green light, reinforcing the buy-side argument as long as momentum sticks. Any retracement, if it comes, could find support at three levels: 144.78, then a touch lower at 144.63, and lastly at 144.56. These need to hold for the present trend to stay intact.
Market participants would do well to recalibrate short-term strategies now, keeping close tabs on US economic reports such as inflation and retail spending in the weeks ahead. These have the potential to shift Dollar sentiment rapidly. Meanwhile, global political headlines, particularly those involving tariff escalations or trade commentary, are not just noise—they’re capable of triggering fast reactions.
The tilt remains upward unless there’s a breakdown below the final support line. We expect technical buyers to re-enter around those points if tested, which could offer brief windows. Staying close to price action and ready to act if it tests those zones should be our current priority.
