The USDJPY rate dropped to the 147.00 support level following the elections in Japan, where it encountered buying interest. Find out more in our analysis for 22 July 2025.
USDJPY forecast: key trading points
- Market focus: the yen strengthened after the recent elections
- Current trend: correcting downwards
- USDJPY forecast for 22 July 2025: 148.00 or 147.00
Fundamental analysis
On Tuesday, the USDJPY rate declined towards the 147.00 level as investors continued to assess the outcome of last weekend’s elections in Japan. Although the ruling coalition lost its majority in the upper house of parliament, this result had largely been priced in.
Prime Minister Shigeru Ishiba is expected to retain his position, easing fears of political instability or a sudden resignation. Ishiba reaffirmed his commitment to overseeing ongoing trade tariff negotiations with the US and addressing other major political issues.
USDJPY technical analysis
On the H4 chart, the USDJPY pair is declining, having reversed downwards from the local daily high of 149.18. The Alligator indicator is trending downwards, confirming the current bearish momentum. The 147.00 level now acts as local support.
Today’s USDJPY forecast suggests that the pair may continue its decline towards 147.00 if the bears maintain control. Conversely, a bullish scenario could unfold if buyers lift the price and secure a position above 148.00, potentially triggering a rise towards the 149.18 resistance level.
Summary
The USDJPY pair dipped towards the 147.00 support level following the elections in Japan. Trade tariff negotiations between Tokyo and Washington are ongoing, with measures set to take effect on 1 August.
Source: Roboforex
