Created on October 23, 2025

The U.S. dollar remains steady against the yen on Wednesday, holding above ¥150 support. Analysts expect continued upside toward ¥153–¥155, citing strong rate differentials and Bank of Japan policy, with dips viewed as long-term buying opportunities.

• The U.S. dollar has been a little bit noisy during the trading session here on Wednesday, but really not a lot has changed if you look at it through that prism.
• All things being equal, I think you’ve got a situation where traders are looking at this through the prism of a market that does pay you to hang on to the trade to the upside.

The ¥150 level has shown itself to be important multiple times, with the ¥150 level being resistance previously and then offering support when we fell on Friday to turn around and form a hammer. All things being equal, if the market were to break above the ¥152 level, then it’s possible that we could go looking to the ¥153.25 level.

Interest Rate Differential and Swap Pays

Over the longer term, I do anticipate that the ¥155 level will be targeted, possibly even higher than that. The 50-day EMA currently sits right around the ¥149 level and is rising, and should end up being a nice buying opportunity. Ultimately, this is a market where I think the interest rate differential continues to pay.

Therefore, you have to look at this as a market that is trying to go much higher over the longer term. Eventually, I think each dip gets bought into, and with the Bank of Japan in a situation where they are probably going to have to stay pretty loose, I think you’ve got a situation where we just cannot go in any other direction. For what it’s worth, the U.S. dollar is strengthening against most currencies, so I like this as a buy-on-the-dip scenario.

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.