The USDJPY pair rose to 155.50 at the beginning of the week. The US imposed trade tariffs on its major partners. Find out more in our analysis for 3 February 2025.
USDJPY forecast: key trading points
- The USDJPY pair is steadily rising in response to higher risks
- Investors are concerned about possible complications for the Japanese economy due to the US tariffs
- USDJPY forecast for 3 February 2025: 155.91 and 156.38
Fundamental analysis
The USDJPY rate starts the week with a surge and rises to 155.50.
The Japanese yen is declining for the second consecutive day due to global currency market reactions to the introduction of US trade tariffs on Canada, Mexico, and China. Investors take into account the possible inflation risks and are very nervous.
These tariffs do not directly affect Japan’s economy. However, it is very dependent on exports and free trade, meaning that the Japanese economic system becomes even more vulnerable to the consequences of disruptions in international trade.
Japan’s domestic news shows that in January, Bank of Japan officials discussed the possibility of further interest rate hikes in response to rising inflation and the weakness of the JPY.
The USDJPY forecast appears optimistic.
USDJPY technical analysis
On the H4 chart, the USDJPY pair is gaining local upward momentum to the first crucial target of 155.91. If buyers find a foothold above this level, the next upside target will be 156.38, with the subsequent crucial target at 156.74.
Summary
The USDJPY pair is rising rapidly on Monday. The market is massively risk-averse as the US launched a new round of trade wars. The USDJPY forecast for today, 3 February 2025, does not rule out further growth to 155.91.
Source: Roboforex
