USDJPY will need strength ahead of central bank meetings

The USDJPY pair is consolidating around 151.98 midweek as traders shift their focus towards upcoming Federal Reserve and Bank of Japan decisions. Discover more in our analysis for 29 October 2025.

USDJPY forecast: key trading points

• The USDJPY pair is saving its strength ahead of key policy meetings from the Fed and the BoJ
• Yen weakness continues to support Japan’s export-oriented sectors
• USDJPY forecast for 29 October 2025: 151.50–152.50

Fundamental analysis

The USDJPY rate edged up to 151.98 on Wednesday as investors await the Bank of Japan’s meeting, where policymakers are widely expected to keep interest rates unchanged.

Officials are set to discuss conditions for a potential resumption of the rate-hike cycle, as tariff-related risks gradually ease, although inflationary pressures still complicate the policy outlook.

Earlier, the yen strengthened by about 0.5% following a meeting between Japanese Finance Minister Satsuki Katayama and US Treasury Secretary Scott Bessent, who urged Japan to pursue a sound monetary policy. Markets interpreted his remarks as a subtle criticism of Japan’s slow pace in tightening monetary conditions.

Japan’s Minister for Economic Revitalisation emphasised that authorities are closely monitoring currency movements. It is worth noting that the yen’s weakness continues to benefit exporters. Against this backdrop, US President Donald Trump and Prime Minister Sanae Takaichi reaffirmed their commitment to strengthening bilateral trade ties and signed agreements covering critical resources during their Tuesday meeting.

Overall, the USDJPY forecast is cautious.

USDJPY technical analysis

On the H4 chart, the USDJPY pair is consolidating after a sharp rally earlier in October that pushed prices to the 153.26 peak. The pair has since transitioned into a sideways range between 151.50 and 152.50.

Currently, traders are cautious ahead of the BoJ decision. The range’s upper boundary near 152.48 acts as the immediate resistance, while the support level lies at 151.50. A breakout below this level could trigger a decline towards 150.90–150.00, while a consolidation above 152.50 would open the path for a retest of 153.20.

Bollinger Bands are narrowing, signalling lower volatility and a potential preparation for the next directional move. Overall, the market remains in a consolidation phase as participants await guidance from central banks to determine the future direction.

Summary

The USDJPY pair is consolidating in anticipation of key events. The USDJPY forecast for today, 29 October 2025, suggests the pair will likely remain within the sideways range between 151.50 and 152.50.

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