The USDJPY pair rose to 155.53 as the US dollar recovered after Trump’s tariff threats. Find out more in our analysis for 28 January 2025.
USDJPY forecast: key trading points
- The USDJPY pair resumes growth after a pause
- Investors avoid risk as they are concerned about problems relating to competition among AI companies and fear tariff wars
- USDJPY forecast for 28 January 2025: 156.38 and 156.74
Fundamental analysis
The USDJPY rate rose to 155.53 on Tuesday. The US dollar resumed growth when US President Donald Trump announced a transformation of tariff plans. According to Trump, it is now expected to impose tariffs on all foreign-made chips, some metals (from copper to steel), and pharmaceuticals. In this way, the US is seeking to support domestic production. This fully aligns with the protectionist political model previously proclaimed by Trump. The “America First” project is just unfolding.
The yen is under pressure from a widespread risk aversion. On the global stage, all eyes are on the story of the Chinese AI startup DeepSeek, which is competing with its US opponents. This was the reason behind yesterday’s US stock exchange collapse.
The Bank of Japan’s January decision to hike the interest rate by 0.5% per annum keeps the JPY from falling deeper. The borrowing costs are now at a 16-year high.
The USDJPY forecast is ambiguous.
USDJPY technical analysis
On the USDJPY H4 chart, the first growth target is 156.38, with the next one at 156.74. So far, the pair is unlikely to climb higher in the current sideways medium-term range. It is worth watching the intermediate support level at 154.98. A breakout of this level will pave the way to 154.76 and then to 153.71.
Summary
The USDJPY pair rose due to the improving position of the US dollar. The USDJPY forecast for today, 28 January 2025, suggests further local growth to 156.38.
