News
7x24
Quotes
Economic Calendar
Video
Data
- Names
- Latest
- Prev.
USD/JPY Extends Three-Day Decline as BoJ Keeps December Hike in Focus
Traders' Opinions
Summary:
USD/JPY falls for a third consecutive day as the BoJ’s inflation outlook and firm Tokyo CPI strengthen expectations of a December rate hike. A weaker US Dollar and declining Treasury yields add to the Yen’s support.
Sell
PENDINGUSDJPY
EXP
157.000
Entry Price
153.400
TP
158.500
SL
158.095 -0.596 -0.38%
--
Point
PENDING
153.400
TP
CLOSING
157.000
Entry Price
158.500
SL
USD/JPY remained under pressure on Friday, extending its decline for a third consecutive session as the Bank of Japan’s latest policy decision reinforced expectations that further monetary tightening could be approaching. The pair slipped below the mid-157.00 region during Asian trading after the central bank maintained its benchmark interest rate at 1.25%, in line with market expectations.
The BoJ’s decision was reached by an 8-1 vote, with board member Takata favouring an immediate rate increase. Although policymakers opted to keep borrowing costs unchanged, the accompanying statement maintained an inflation outlook that could support another move higher. The central bank expects underlying inflation to remain around levels consistent with its price stability target, while acknowledging that risks to the price outlook are tilted to the upside. Combined with an unexpectedly firm Tokyo CPI reading earlier in the session, these signals have strengthened speculation that the BoJ could raise rates as soon as December.
The Yen is also benefiting from renewed weakness in the US Dollar. Hopes that diplomatic efforts could eventually bring an end to the US-Iran conflict have reduced some demand for the Greenback, while declining US Treasury yields are narrowing the interest-rate advantage that has supported USD/JPY. This shift in yield dynamics is particularly relevant for the pair, as a smaller US-Japan rate differential makes the Yen relatively more attractive.
However, traders may remain cautious about extending bearish positions before hearing from BoJ Governor Kazuo Ueda at the post-meeting press conference. His assessment of inflation, economic conditions and the timing of future policy adjustments could determine whether markets maintain their December rate-hike expectations. For now, the combination of a potentially more hawkish BoJ outlook and softer US Dollar demand leaves USD/JPY vulnerable to additional selling pressure.
Technical Analysis
USD/JPY is showing renewed bearish momentum on the H4 chart after failing to sustain its recovery above the 157.50 resistance region. The pair recently rebounded from around 156.10, but the recovery stalled below the previous swing highs, producing another lower high before sellers pushed the price back towards 157.00. This price action suggests that the recent upward correction may have run its course, with the broader structure beginning to favour further downside.
The 157.45–157.55 region is now an important resistance area. It previously acted as a consolidation zone, but the latest price movement shows that buyers have struggled to reclaim it. As long as USD/JPY remains below this level, selling pressure could persist. A sustained move beneath 157.00 would strengthen the bearish case and expose the next major support around 155.20, where the market previously found buying interest.
If sellers maintain control and the 155.20 support zone gives way, the decline could extend towards the 153.20–153.40 region. This lower area represents the next significant downside objective on the chart. However, a recovery above 157.55 would weaken the immediate bearish setup, while a stronger break above 158.70 would invalidate the current downside projection.
TRADE RECOMMENDATION
SELL USD/JPY
ENTRY PRICE: 157.00
STOP LOSS: 158.50
TAKE PROFIT: 153.40
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.
Quick Access to 7x24
Quick Access to More Editor-selected Real-time News
Exclusive video for free
FastBull project team is dedicated to create exclusive videos
Real-time Quotes
View more faster market quotes
More comprehensive macro data and economic indicators
Members have access to entire historical data, guests can only view the last 4 years
Member-only Database
Comprehensive forex, commodity, and equity market data
English
English
العربية
繁體中文
简体中文
Bahasa Melayu
Bahasa Indonesia
ภาษาไทย
Tiếng Việt
Copyright © 2026 FastBull Ltd
Home News Columns 7x24 Economic Calendar Quotes Video Data WarehouseAnalysis AI Signal Pro User Agreement Privacy Policy About Us
Risk Disclosure
The risk of loss in trading financial assets such as stocks, FX, commodities, futures, bonds, ETFs or crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No consideration to invest should be made without thoroughly conduct your own due diligence, or consult with your financial advisors. Our web content might not suit you, since we have not known your financial condition and investment needs. It is possible that our financial information might have latency or contains inaccuracy, so you should be fully responsible for any of your transactions and investment decisions. The company will not be responsible for your capital lost.
Without getting the permission from the website, you are not allow to copy the website graphics, texts, or trade marks. Intellectual property rights in the content or data incorporated into this website belongs to its providers and exchange merchants.