The USDJPY rate is declining, falling to the support area around 147.00 amid general dollar weakness and positive data from Japan. Find out more in our analysis for 7 August 2025.
USDJPY forecast: key trading points
- Market focus: Japan’s Leading Index rose to 106.1 in June, the highest since March this year
- Current trend: moving downwards
- USDJPY forecast for 7 August 2025: 148.00 or 146.00
Fundamental analysis
The Japanese yen is moderately strengthening amid positive economic data. Japan’s Leading Index, which reflects economic prospects for the coming months, rose to 106.1 in June 2025 according to preliminary estimates, compared to the final reading of 104.8 in May.
Last week, the Bank of Japan left interest rates unchanged but raised its inflation forecast, warning of growing risks due to current global trade tensions. The minutes from the monetary policy meeting showed that the central bank remains open to further rate hikes, particularly if external risks subside.
USDJPY technical analysis
The USDJPY pair is declining, with a Triangle pattern forming on the H1 chart. The Alligator indicator is moving downwards, confirming the ongoing bearish trend. The current local support stands at 147.00; a breakout below this level could pave the way to 146.00.
Today’s USDJPY forecast suggests the pair may dip further towards 147.00 and lower if bears maintain momentum. Conversely, a bullish scenario will become possible if buyers reverse the pair and gain a foothold above 148.00, potentially opening the path towards the 149.00 resistance level.
Summary
The USDJPY pair has fallen to the area around 147.00 due to general US dollar weakness and strong Japanese statistics. A Triangle pattern is forming on the chart, indicating a possible continuation of the pair’s downtrend.
Source: Roboforex
