Political instability in Japan and the Federal Reserve’s decision are provoking heightened volatility in USDJPY, with quotes possibly rising to 148.00. Discover more in our analysis for 10 September 2025.
USDJPY forecast: key trading points
- The market awaits the Fed’s decision
- Japan’s political uncertainty weighs on the yen
- USDJPY forecast for 10 September 2025: 148.00
Fundamental analysis
Fundamental analysis for 10 September 2025 shows that the USDJPY pair is forming a growth wave and is trading around 147.30.
Amid anticipation of the Federal Reserve’s interest rate decision, pressure on the USD is intensifying. High volatility and weak US labour market data have reinforced expectations of significant monetary easing from the Federal Reserve. This weakens the USD overall and adds support to the yen.
At the same time, today’s USDJPY forecast factors in the resignation of Japan’s prime minister and uncertainty surrounding the Bank of Japan’s policy, which in turn puts additional pressure on the yen. However, expectations of a BoJ rate hike in October are laying the groundwork for the potential strengthening of the currency.
The USDJPY rate remains uncertain: on the one hand, expectations of a Fed rate cut weaken the USD, while on the other, Japan’s political instability is a negative factor for the yen. If the BoJ reiterates its intention to tighten monetary policy, the yen will gain chances to strengthen against the USD.
USDJPY technical analysis
Having tested the lower Bollinger Band, the USDJPY pair formed a Hammer reversal pattern on the H4 chart, currently trading around 147.30. At this stage, it may continue an upward wave following the signal from the pattern. Since the USDJPY rate is within an ascending channel, it could climb to the 148.00 resistance level.
However, the USDJPY forecast also considers an alternative scenario, where the price declines to 146.80 before growth.
Summary
Political intrigue in Japan continues to pressure the yen. USDJPY technical analysis suggests an upward move towards the 148.00 resistance level.
Source: Roboforex