The most active trading sessions for the USD/JPY take place in Tokyo, London and New York. Day traders look mostly to the London and New York sessions but those trading wishing to trade on the Asian markets can do so between 2400 GMT - 0900 GMT.
USD/JPY has traditionally been the most politically sensitive currency pair, with successive U.S. governments using the exchange rate as a lever in trade negotiations with Japan. For day-to-day trading, the most significant feature of USD/JPY is the heavy influence exerted by Japanese institutional investors and asset managers.
The USD/JPY has recently dipped below 101.00. Read the Daily Forex USD to Japanese Yen forecast and get access to the most up-to-date statistics, analyses and economic events regarding the USD/JPY.
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For the second day in a row, the USD/JPY is moving with bullish momentum, reaching the resistance level of 114.20, where it has settled as of this writing.
Since the beginning of this week, the USD/JPY has been moving in narrow ranges in the vicinity of the 113.33 level and the 113.75 level, where it has settled as of this writing.
The US Federal Reserve’s indications about the future of tightening its policy contributed to strong gains for the dollar pairs.
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The US dollar crosses got more bullish momentum after the Federal Reserve announced that it would end its asset buying campaign in March and then start raising interest rates soon after.
The US dollar remains strong in the Forex market as investors begin to flock to traditional safe-haven assets amid an ocean of red ink in global financial markets.
The USD/JPY pair's stable performance is expected to remain until investors and markets identify and interact with the important events of this week, starting with the FOMC.
The outlook for the US dollar was boosted last Friday when official figures confirmed US inflation had risen to a new multi-decade high last month, which is likely to keep the Federal Reserve (Fed) on course to accelerate its monetary policy normalization.
Concerns in Asia about the economic situation in China calmed a bit, leaving room for risk appetite.
Since the start of this week's trading, the USD/JPY has been moving within attempts to rebound upwards, reach the 113.78 resistance and settling around 113.50 as of this writing.
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For three trading sessions in a row, the USD/JPY has been trying to stop its losses, moving towards the 113.61 resistance amid a relative calm in the markets considering the Chinese crisis and the new COVID variant.
Immediately after the US jobs report, the USD/JPY fell to the 112.55 support level, and as the markets absorbed the results, the pair returned to settle around 113.05 as of this writing.
The USD/JPY's attempts to recover were still weak yesterday.
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For the third day in a row, the USD/JPY is settling below the 113.00 support level after strong selloffs which the pair recently witnessed as it collapsed from its highest level in six years, when it tested the 115.52 resistance level last week.
A state of risk-aversion prevailed in global financial markets at the end of last week’s trading amid decisions by countries around the world to impose restrictions due to a new variant of the Corona virus that resists available vaccines.