USDJPY fell to a five-month low: the yen acts as a safe-haven asset

The USDJPY pair is hovering around 147.60 on Friday as the market needs safe-haven assets. Discover more in our analysis for 7 March 2025.

USDJPY forecast: key trading points

• The USDJPY pair fell to its lowest level since 8 October 2024
• The market is in dire need of safe-haven assets and favours the yen
• USDJPY forecast for 7 March 2025: 147.29

Fundamental analysis

The USDJPY rate fell to 147.60, driven by increased demand for safe-haven assets amid the escalating global trade war and the volatile tariff policy of US President Donald Trump.

The market is concerned about the possible impact on the US economy, which prompts investors to shift from the US dollar to the yen and Swiss franc.

Domestically, the JPY position and Japan’s government bond yields strengthened on expectations that the Bank of Japan will continue to raise interest rates this year.

This week, BoJ Deputy Governor Shinichi Uchida said that the regulator could raise rates further if its economic forecasts prove true. Such comments could be interpreted as the beginning of a withdrawal from a sweeping monetary easing program.

The USDJPY forecast is stably negative.

USDJPY technical analysis

The USDJPY H4 chart shows an opportunity for the selling wave to extend to 147.29.

The instrument looks oversold, so in case of a stop near 147.30 and consolidation, the market could move higher to 148.80.

Summary

The USDJPY pair plummeted to five-month lows. The USDJPY forecast for today, 7 March 2025, expects the sell-off to continue, with an intermediary target at 147.29.