USDJPY rebounded from the key support level at 146.25 as bullish pressure increases. The current quote stands at 147.10. Full details in our analysis for 23 July 2025.
USDJPY forecast: key trading points
- Bank of Japan Deputy Governor Shinichi Uchida announced continued interest rate hikes
- Political uncertainty in Japan intensifies, weighing on the yen
- USDJPY forecast for 23 July 2025: 148.70
Fundamental analysis
USDJPY is strengthening today as buyers successfully defended the support level. Previously, the yen found support following Donald Trump’s statement on a new trade agreement with Japan. The deal includes a 15% tariff on Japanese exports to the US and Tokyo’s commitment to invest 550 billion USD into the American economy while opening its markets to key US products.
Additional impact on the USDJPY rate came from comments by Bank of Japan Deputy Governor Shinichi Uchida, who stated that the central bank would continue to raise interest rates as the economy strengthens and inflation accelerates.
Meanwhile, political uncertainty in Japan is escalating. Prime Minister Shigeru Ishiba is reportedly considering resignation following a major defeat in the elections, which may put additional pressure on the yen.
USDJPY technical analysis
USDJPY remains within an upward channel and has bounced off strong support around 146.25, confirming renewed buyer interest. Today’s forecast anticipates a continued move upwards, with the next target at 148.70 and a possible test of the key resistance at 149.35.
Stochastic Oscillator analysis supports this view: signal lines have reversed from oversold territory, indicating fading bearish pressure and a new bullish impulse forming. A breakout above the upper boundary of the descending channel, with price holding above 147.35, would further confirm the bullish scenario.
Summary
USDJPY is gaining strength after defending a critical support level, despite expectations of further Bank of Japan tightening. Technical analysis signals the potential for continued upward movement, with near-term targets at 148.70 and 149.35.
Source: Roboforex
