USD/JPY has fallen due to increased demand for the Japanese yen (JPY), reaching 153.52. Several factors are contributing to this decline, such as the delay in the Bank of Japan (BOJ) policy changes, higher fiscal burdens linked to debt servicing, and the possibility of an early election, all of which could put downward pressure on the JPY. For USD/JPY to drop further, we need a weaker USD and a more active BOJ. The daily chart reveals decreasing bullish momentum, and the Relative Strength Index (RSI) suggests a downturn from overbought levels. Current support levels are 152.40 and 151.60, while resistance is at 154.40.

Currency Movements

In other currency movements, USD/CNH might rise to 7.1390, and EUR/USD is trading below 1.1500. GBP/USD remains steady above 1.3000 after a recent drop. Gold is under $4,000 despite some small gains, showing ongoing market caution. The ADP Employment Report is expected to reveal that October added 24,000 new jobs. Future US data and discussions from the Federal Reserve could challenge the US Dollar’s strength. This week, we face varied currency trends, emphasizing the importance of central bank meetings. Stellar (XLM) may experience further losses as it falls out of a channel pattern amid declining retail demand. As of November 5th, 2025, the USD/JPY pair is drifting lower towards 153.50. This retreat from the year’s highs signals traders to reconsider long positions. The fading momentum in daily charts indicates that considering options for a stronger yen or a move toward the 152.40 support level could be wise in the coming weeks.

US Dollar and Yen Factors

The case for a weaker US dollar is growing, which could boost this downward move. The recent US ADP report for October showed only 15,000 jobs added, falling short of the expected 24,000. This weak data indicates a cooling labor market and reinforces speculation that the Fed may cut rates in December, with over a 70% chance now priced in according to futures data. On the yen front, concerns about direct intervention from the Ministry of Finance have eased, as we pull back from the year’s highs above 160 — a level that prompted action in 2024. However, with core inflation in Tokyo rising to 2.9% last month, there’s ongoing pressure on the Bank of Japan to show a stronger commitment to policy normalization. Any hawkish comments from the central bank could further strengthen the yen. This suggests a time of increased volatility, making options strategies useful for managing risk around important data announcements. We should monitor upcoming comments from the Fed and the US ISM Services report for more insight into the dollar’s future direction. The possibility of a snap election in Japan also remains a wildcard, which could lead to sudden downward pressure on the yen if political instability rises. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now