USDJPY Price Forecast: Summary
In the latest analysis by Razan Hilal, the USDJPY currency pair is currently facing key resistance levels as it prepares for significant central bank meetings. The article highlights the impact of recent economic events, including a rate hike by the Reserve Bank of Australia (RBA) and ongoing crude oil supply disruptions in the Middle East, which have contributed to a cautious market sentiment.
Central Bank Meeting Schedule
- RBA raised rates from 3.85% to 4.10%.
- Bank of Canada (BOC) and Federal Reserve (Fed) are expected to maintain rates at 2.25% and 3.75% respectively.
- Bank of Japan (BOJ), Swiss National Bank (SNB), Bank of England (BOE), and European Central Bank (ECB) are also anticipated to hold rates steady.
Market Sentiment and Key Levels
The article notes that the prevailing market theme is influenced by crude oil prices, which are hovering near $100, and the geopolitical tensions in the Middle East. This backdrop supports the US dollar, particularly in light of the RBA's recent rate hike and expectations for the Fed's policy direction.
Key levels to monitor for the US Dollar Index (DXY) include:
- Upside breakout risk above 100.50.
- Downside risk below 99.50.
Technical Analysis of USDJPY
On the monthly chart, the DXY shows signs of consolidation since June 2025, potentially forming a double bottom pattern. A close above 100.50 could confirm a bullish reversal, paving the way for gains in major dollar pairs, including USDJPY.
For USDJPY specifically, the analysis indicates:
- Resistance is currently at 159.80 and the 1990 high.
- A decisive close above 160 and 163 could lead to a bullish breakout towards the 180 zone.
- Conversely, a close below 158.80 could expose lower support levels at 154 and 152.
Conclusion
The upcoming central bank meetings are critical for determining the future direction of the USDJPY pair. Traders should remain vigilant for potential market reactions based on the outcomes of these meetings and ongoing geopolitical developments.