Created on October 24, 2025
The U.S. dollar strengthened Thursday against the yen, testing the key ¥153 level amid persistent bullish momentum. Analysts cite rising yields, favorable swap carry, and Japan’s loose monetary stance as reasons for continued upside potential going forward, over the longer term.
The U.S. dollar has rallied a bit against the Japanese yen during trading on Thursday as we continue to see plenty of overall upward pressure. The U.S. dollar has been bullish for some time against the Japanese yen. Going all the way back to the third week of April, the market has been a bit volatile, but keep in mind that this entire time, you get paid to hang on to a long position in this market via a swap.
153 Yen Remains Important
We now find ourselves testing the ¥153 level. The ¥153 level, of course, is a large, round, psychologically significant figure and has been very difficult to break above previously. We did see a drop down to the ¥150 level, which, of course, will attract a lot of attention in itself. And then we bounced.
The 50-day EMA sits at the ¥149.31 level and is rising quite significantly. Ultimately, it’s worth noting that the gap that occurred a couple of weeks ago during the Japanese election results suggests that we are going to continue to see a lot of upward momentum.
It’s also worth noting that the presumed monetary policy coming out of the Bank of Japan is rather loose. That should work against the value of the Japanese yen from a longer-term perspective. Simultaneously, the U.S. dollar has been strengthening for some time. With that being the case, I think it’s a perfect marriage of a strengthening currency against a weakening currency, and I remain bullish of the US dollar against the Japanese yen.
Want to trade our USD/JPY forex analysis and predictions? Here’s a list of forex brokers in Japan to check out.
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.