USDJPY forecast: the yen continues to strengthen against the USD

Amid economic data from Japan and the US, the USDJPY rate may form a correction before declining to 146.80. Discover more in our analysis for 10 March 2025.

USDJPY forecast: key trading points

• Japan’s Leading Economic Index (m/m): previously at 107.9, currently at 108.0
• US consumer inflation expectations: previously at 3.0%, projected at 3.0%
• USDJPY forecast for 10 March 2025: 148.60 and 146.80

Fundamental analysis

Japan’s Leading Economic Index estimates the overall economic climate, combining 12 different indicators, including machinery orders and stock exchange quotes. A reading below 50.0 shows that most indicators are negative, while a reading above 50.0 suggests positive changes.

Fundamental analysis for 10 March 2025 shows that the actual reading stands at 108.0, up from the previous period. The high index level could be one of the factors behind the strengthening of the yen against the US dollar.

According to the forecast for 10 March 2025, US consumer inflation expectations are projected to remain unchanged at 3.0%. The indicator has shown stability over the three previous periods, potentially indicating some recession in the economy.

USDJPY technical analysis

Having tested the lower Bollinger band, the USDJPY price has formed a Hammer reversal pattern on the H4 chart. At this stage, it continues a corrective wave following the pattern signal. Since the quotes have rebounded from the support level and are now moving within a descending channel, they will likely pull back to the resistance level.

The target for a correction is the 148.60 level. A rebound from this level may open the potential for a more substantial downward movement.

However, the USDJPY forecast for today takes into account another scenario, where the price falls to 146.80 without testing the resistance level.

Summary

Amid the economic data from Japan, the USDJPY forecast appears optimistic for the yen, with the USDJPY technical analysis suggesting a correction towards 148.60 before a further decline.