USDJPY remains in a narrow range for five consecutive sessions

The USDJPY rate remains in a narrow range amid disagreements within the BoJ over the timing of future rate hikes. The current quote is 147.33. Find out more in our analysis for 8 August 2025.

USDJPY forecast: key trading points

• BoJ members are split over the timing and pace of future rate hikes
• BoJ raised its inflation outlook and improved its economic forecast
• Growth in household spending in Japan slowed sharply in June
• USDJPY forecast for 8 August 2025: 150.50

Fundamental analysis

Today, the USDJPY rate is rising slightly, while remaining within the range that has held for five consecutive trading sessions. Buyers continue to defend the key 146.65 support level. The US dollar is strengthening after the release of the BoJ’s July meeting minutes, which revealed that board members are divided on the timing and pace of future rate hikes.

The central bank kept its interest rate at 0.5%, raised its inflation forecast, and presented a more optimistic assessment of the economic outlook. Some BoJ officials warned of rising inflationary pressures and supported a gradual rate hike to avoid abrupt tightening. Others argued for maintaining the current accommodative stance, citing significant uncertainty over whether economic forecasts will materialise.

On the economic side, Japan’s household spending growth slowed notably in June as consumers faced combined pressure from US tariffs and persistent domestic inflation.

USDJPY technical analysis

The USDJPY rate moves within an ascending channel, forming a Triangle pattern above the key 146.65 support level. The price holds above the 285-period Moving Average on H4, indicating that buyers still have the upper hand. The narrowing range and the formation of the Triangle pattern point to a likely acceleration in movement once one of the boundaries is broken.

Today’s USDJPY forecast suggests the support level remains intact, with the price breaking above the upper boundary of the Triangle and rising towards 150.50. The Stochastic Oscillator confirms the bullish scenario: the signal lines have exited oversold territory and are forming a bullish crossover, indicating reduced selling pressure. A breakout above the Triangle’s upper boundary, with the price consolidating above 148.05, would further support the bullish outlook.

Summary

The USDJPY rate remains in a narrow range with the support level at 146.65, while divisions within the BoJ and weak household spending data add to pressure on the yen. USDJPY technical analysis indicates the pair retains bullish potential, with a likely breakout above the Triangle pattern and movement towards 150.50.