The USDJPY pair continues to strengthen steadily amid expectations surrounding the upcoming BoJ meeting and a potential Fed rate cut, with the rate currently at 153.11. Find out more in our analysis for 27 October 2025.
USDJPY forecast: key trading points
- The Bank of Japan is expected to keep interest rates unchanged at its upcoming meeting
- Investors await Prime Minister Sanae Takaichi’s meeting with US President Donald Trump
- USDJPY forecast for 27 October 2025: 154.25
Fundamental analysis
The USDJPY rate continues its upward momentum for the third consecutive session as buyers test the key resistance level at 153.20. The Japanese yen remains under pressure amid expectations of large-scale fiscal expansion by the new government and uncertainty surrounding the Bank of Japan’s next policy moves.
The BoJ is widely expected to maintain its current policy stance at this week’s meeting, while investors look ahead to the upcoming meeting between Prime Minister Takaichi and President Trump, which could provide additional political signals.
Meanwhile, US inflation data for September showed a slightly weaker-than-expected acceleration, with annual CPI up to 3.0% from 2.9% in August. This modest uptick has reinforced expectations that the Federal Reserve will lower rates at its October meeting, with another reduction likely in December.
USDJPY technical analysis
The USDJPY rate remains within an ascending channel, currently testing a major resistance level. The USDJPY forecast suggests a possible bearish correction from current levels, followed by renewed growth towards 154.25.
The Stochastic Oscillator supports the bullish scenario, remaining in positive territory and forming an upward support line that signals sustained buying momentum. Additionally, the pair continues to bounce off the EMA-65, confirming the strength and consistency of the uptrend.
Consolidation above 153.45 would further strengthen the bullish case, paving the way for a move towards the upper boundary of the channel.
Summary
The current USDJPY performance indicates market confidence that the BoJ will maintain its ultra-loose policy stance, which helps the US dollar strengthen against the yen. USDJPY technical analysis confirms sustained upward momentum, with a breakout above 153.45 opening the path for further gains towards 154.25.
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