USDJPY is trading sideways for thirteen trading days

The USDJPY rate remains weak in the market, while buyers’ attempts to regain control face strong resistance. The current quote is 147.46. Find out more in our analysis for 20 August 2025.

USDJPY forecast: key trading points

• The Japanese yen strengthens despite weak trade figures
• Japan’s exports in July fell by 2.6% year-on-year
• Japan’s imports declined by 7.5%, marking the fourth drop since the start of the year
• USDJPY forecast for 20 August 2025: 145.50

Fundamental analysis

The USDJPY rate is declining for the second consecutive session after a failed attempt to break above the 147.95 resistance level. The yen strengthens despite weak trade figures, while the pair has remained in a sideways range for thirteen trading days.

Japan’s exports in July dropped by 2.6% year-on-year, the sharpest fall in four years, pressured by US tariffs and weaker external demand. Imports also fell by 7.5%, marking the fourth decline since the beginning of the year.

Investors remain divided over the timing and pace of future Bank of Japan monetary tightening steps. Meanwhile, BoJ Governor Kazuo Ueda once again stressed caution, noting that core inflation still stands below the 2.0% target. As part of today’s USDJPY forecast, this cautious stance continues to restrain further yen strengthening.

USDJPY technical analysis

The USDJPY rate continues to decline, trading within a descending channel. An attempt to consolidate above the 147.95 resistance level failed, confirming persistent selling pressure. The price moved below the EMA-65, reinforcing signals of a potential downward correction.

The USDJPY forecast for today suggests a decline towards 145.50. The Stochastic Oscillator forms a bearish signal, with its lines turning downwards, confirming stronger selling momentum.

Consolidation below 147.15 would further confirm the bearish scenario.

Summary

The news background for the USDJPY pair indicates persistent yen pressure, although weak trade data and the BoJ’s cautious stance continue to limit further strengthening of the national currency. USDJPY technical analysis points to continued selling pressure and a high probability of a decline towards 145.50.

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