U.S. Dollar / Japanese Yen

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U.S. Dollar / Japanese Yen forum


USDJPY go for long with target profit of 148.788 and 150.515
Snapshot

USDJPY a break below 147.645 should see a reset to the lower 147 levels.

USDJPY Kind of curious if this is the new base level going into next week.

USDJPY First TP hit setting SL to BE at 146.8 and letting this ride. End target is 152.

Key News Highlights
1. Japanese Investors Shift to Foreign Bonds Amid Yen Weakness
Data released on August 8 shows that in July 2025, Japanese investors sold about ¥536.4 billion in foreign equities and instead purchased ¥3.63 trillion in foreign bonds. This move was largely driven by a 4.5% depreciation of the yen against the dollar—its biggest monthly drop since December 2024
Reuters
.

Why it matters:
This reflects widespread domestic confidence that the yen would continue to weaken, prompting a shift toward higher-yielding foreign assets and reinforcing downward pressure on the currency.

2. U.S. Dollar Strengthens as Fed Turns Dovish
On the same day, the U.S. dollar gained modestly—JPY weakened by roughly 0.4%, reaching around 147.74 per dollar—as markets reacted to President Trump’s nomination of Stephen Miran to the Fed, signaling a potential dovish tilt and likely future rate cuts
Reuters
+1
.

Implication:
A softer Fed policy stance generally lowers U.S. interest rates, but here, the dollar strengthened due to investor repositioning and expectations of policy shifts—further compounding the yen’s decline.

3. U.S. Rate Signals & Japan Household Data Influence
Markets in Japan buoyed (e.g., Nikkei rose ~2%) on strong corporate earnings and speculation of U.S. tariff adjustments
forexgdp.com
+15
Reuters
+15
capitalstreetfx.com
+15
.

However, the yen softened as the dollar gained amid expectations of U.S. rate cuts and underwhelming household spending data in Japan, tempering prospects of BoJ tightening.

Consolidated Insight: What’s Driving the Yen Lower?
Factor Description
Investor Capital Flows Massive selling of foreign equities and buying of foreign bonds by Japanese investors as the yen weakens.
U.S. Dollar’s Strength U.S. policy shifts—particularly a perceived dovish tilt at the Fed—are buoying the dollar even amid softening U.S. fundamentals.
Japan’s Domestic Conditions Weak household spending dampens market expectations for BoJ rate hikes, removing counterbalance to yen depreciation.

Summary
At the time corresponding to 2 a.m. MST (8 a.m. BST/London) on Friday, August 8, 2025, the yen was notably under pressure. Key contributing factors included broad investor positioning favoring foreign bonds, the dollar’s resilience in light of Fed developments, and lackluster domestic data in Japan.

USDJPY 1HR chart. Trading order blocks has been so good to me this week. Bit of patience required as well as not being afraid to pull the trigger.
Snapshot


USDJPY New trade setup!

- #USD JPY BUY @ 147.700
- TP1: 147.800
- TP2: 147.900
- TP3: 148.000
- SL: 147.400

Manage risk, trade smart! Let's track this trade! (Btw, you said "sell" at the end, but the setup is for a buy)

USDJPY i m not buyer at this time but price should touch 148.10 to 20 and i will be seller... and best zone for buy 147.55 to 45