The US Dollar (USD) against the Japanese Yen (JPY) is expected to move between 153.30 and 154.40. Long-term forecasts indicate it will trade within a wider range of 152.40 to 154.40. In the last 24 hours, the USD dropped to 152.94 but then bounced back to 154.35. Future movements may remain within the 153.30 to 154.40 range.

Long Term Projections

Looking ahead one to three weeks, experts believe the USD will stay within the 152.40 to 154.40 range. This suggests a stable trading phase for the USD. These insights come from selected observations by trusted analysts and the FXStreet Insights Team. They provide useful information but are not specific buying or selling recommendations. Remember, investing carries risks. Always do thorough research before investing. FXStreet cautions that investments can result in a total loss of funds, along with emotional implications. FXStreet and its contributors are not responsible for any errors or decisions made based on this information. They do not offer personalized investment advice and are not investment advisors.

Market Strategies and Considerations

In the coming weeks, the USD/JPY pair is likely to trade within a specific range of 152.40 to 154.40. This stability comes as the Federal Reserve seems to be in a prolonged pause, especially after the October 2025 US jobs report showed only 150,000 new jobs, indicating a cooling labor market. The Bank of Japan is also holding steady, creating a balanced yet static environment for this currency pair. With expected low volatility, selling options to collect premiums looks attractive. The one-month implied volatility for USD/JPY has dropped to about 7.8%, much lower than during the rate hike cycles of 2023 and 2024. This creates a good opportunity for selling strangles or iron condors with strike prices set outside the 152.40 to 154.40 boundaries. We should pay close attention to the upper end of the range. Any movement towards the 155.00 level poses a significant risk of intervention. Japanese authorities stepped in previously to support the yen when the dollar strengthened past 151 in late 2022 and 2023. This historical context creates strong psychological resistance, making the area above 154.40 a potentially good zone for selling call options. The lower boundary around 152.40 is likely to hold firm due to the ongoing interest rate differences between the US and Japan. Even though the Fed is on hold, US bond yields remain significantly higher than those of Japanese government bonds, making the USD more appealing. This positive carry should attract buyers if the price dips toward the lower end of the range. Create your live VT Markets account and start trading now.

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