The USDJPY rate is rising steadily, supported by instability in Japan’s bond market. The price currently stands at 144.61. Find out more in our analysis for 28 May 2025.
USDJPY forecast: key trading points
- The USDJPY rate has been climbing for three consecutive days
- The US dollar strengthened following reports of potential Japanese government intervention to stabilise the bond market
- USDJPY forecast for 28 May 2025: 141.15
Fundamental analysis
The USDJPY rate continues to strengthen for the third consecutive trading session, although buyers have yet to reach the key resistance level at 145.65. In the context of today’s USDJPY forecast, this suggests there is still room for further upside in the current bullish correction.
The US dollar received a significant boost after reports emerged that Japanese authorities may intervene to stabilise their domestic bond market. This could involve reducing the issuance of super-long bonds, especially after a recent spike in yields.
In addition, the Bank of Japan governor stated that ongoing trade negotiations with the US are adding a high degree of uncertainty to the economic outlook. He also reiterated the central bank’s readiness to adjust its monetary policy, if needed, to achieve inflation targets.
USDJPY technical analysis
The USDJPY rate has consolidated above the Moving Averages, indicating a high probability of another attempt to rise. However, today’s USDJPY forecast suggests a rebound from the upper boundary of the descending channel, followed by a decline to the 141.15 level.
The Stochastic Oscillator supports a potential reversal: its values have reached overbought territory, and the signal lines have crossed, forming a potential sell signal.
The bearish scenario will be confirmed by a breakout below the lower boundary of the corrective channel, with the price consolidating below 143.65.
Summary
Uncertainty in Japan’s economic outlook and the possibility of government intervention continue to support the short-term bullish correction in the USDJPY pair. However, USDJPY technical analysis points to a possible decline to 141.15.
