The USDJPY pair remains at lows: a fresh driver is needed for new sales

The USDJPY pair is hovering around 151.85 on Wednesday. The yen needs a reason to strengthen further. Discover more in our analysis for 19 February 2025.

USDJPY forecast: key trading points

• The USDJPY pair halted its decline but may rapidly resume it
• The JPY rate is supported by expectations of a Bank of Japan interest rate hike
• USDJPY forecast for 19 February 2025: 150.95

Fundamental analysis

The USDJPY rate is hovering near 151.85 in the middle of the week.

Japan’s economic data released yesterday was weaker than expected, causing the yen to decline slightly. However, strategically, its position has not changed, with the Japanese currency remaining in a fairly strong position.

Machinery orders unexpectedly decreased in December. In addition, Japan’s trade deficit in January was larger than expected, with imports exceeding exports.

Against this backdrop, the JPY continues to receive support from expectations about the Bank of Japan’s decisions this year. The baseline scenario suggests that the BoJ will continue to pursue a tightening course. However, the decision to be made by the regulator in March is still highly unclear.

Externally, the yen continues to react to the US dollar dynamics amid news about the White House tariffs.

The USDJPY forecast appears negative.

USDJPY technical analysis

On the USDJPY H4 chart, the general trend remains downward. However, corrective pullbacks are not ruled out. The price is now below the 152.54 resistance level.

If the market moves in this direction, the next target will be 153.26. If the current trend expands, the market will focus on breaking below the 150.95 level. This mark should be monitored as it is a significant support level.

Summary

The USDJPY pair has halted its movement and is consolidating. Investors are assessing both Japan’s domestic statistics and the external news flow. The USDJPY forecast for today, 19 February 2025, suggests a further decline to the 150.95 target.