USDJPY paused after two-day growth: the yen is strong despite a correction

The USDJPY pair is hovering around 148.20 after strengthening for two days. The market is reacting to the US news. Find out more in our analysis for 13 March 2025.

USDJPY forecast: key trading points

• The USDJPY pair rose and stopped
• The temporarily weakening of the yen does not cancel its fundamental strength based on future BoJ interest rate hikes
• USDJPY forecast for 13 March 2025: 149.18 and 149.75

Fundamental analysis

The USDJPY rate is hovering near 148.20 after rising for two days. The market attempted to move higher but failed to maintain momentum. The yen found support in the local weakness of the US dollar, which came under pressure amid concerns about the economic impact of the escalating global trade war.

The yen is well bolstered by expectations that the Bank of Japan will continue to raise interest rates this year. Wage growth and inflation, which remain high, support this scenario.

Earlier this week, Japanese companies agreed to significantly increase wages for the third consecutive time to help their employees cope with inflation and ease labour shortages. Wage growth will boost consumer spending, support inflation, and give the Bank of Japan more room to raise interest rates further.

The USDJPY forecast is neutral.

USDJPY technical analysis

On the USDJPY H4 chart, conditions are forming for a sideways movement between 147.71 and 149.18. Since market activity is rather high, there are chances of a breakout out of the range. An upward breakout will open the way to 149.75, while a downward breakout will keep current the baseline scenario with a decline to 147.29.

Summary

The USDJPY pair was experiencing an upward pressure for two consecutive days due to the local weakening of the US dollar. The USDJPY forecast for today, 13 March 2025, shows conditions for sideways trading between 147.71 and 149.18.