The USDJPY rate is strengthening as trade tensions ease between the US and China, currently standing at 141.88. Discover more in our analysis for 23 April 2025.
USDJPY forecast: key trading points
- US-China trade concerns ease
- Geopolitical tensions decline, supporting the US dollar
- The au Jibun Bank Japan Composite PMI rose to 51.1
- USDJPY forecast for 23 April 2025: 138.45
Fundamental analysis
The USDJPY rate is recovering after rebounding from the support level, but remains under pressure. The US dollar got a modest boost from a decline in geopolitical tensions as concerns about US-China trade relations and the Federal Reserve's independence have eased. President Donald Trump confirmed he does not intend to remove Federal Reserve Chairman Jerome Powell, reducing uncertainty about the future US monetary policy.
In Japan, economic data provided a positive signal, with business activity in the private sector increasing after a decline in March. According to preliminary data, the au Jibun Bank Composite PMI rose to 51.1 in April 2025 from 48.9 in March, marking the fifth improvement in six months, driven by a recovery in the services sector.
Stronger Japanese macroeconomic data could boost demand for the yen and, according to the USDJPY forecast for today, trigger renewed downward momentum.
USDJPY technical analysis
The USDJPY rate is in a corrective phase after rebounding from the lower boundary of a bearish channel. Today’s USDJPY forecast expects the bullish correction to stall around 143.05, followed by renewed selling and a move towards 138.45.
Technical indicators support the bearish outlook, with Moving Averages acting as dynamic resistance levels, and the Stochastic Oscillator reversing from the overbought area, indicating that downward momentum may soon resume.
A breakout below the lower boundary of the ascending corrective channel will confirm this scenario, with the price securing below 141.65.
Summary
While reduced trade tensions support the US dollar, the USDJPY technical analysis points to a likely decline to 138.45, indicating that the downtrend could resume.
