USDJPY rises above 155.00 after Japan’s GDP decline

The USDJPY pair is on the rise, consolidating above the 155.00 level amid Japan’s GDP contraction in Q3. Find out more in our analysis for 18 November 2025.

USDJPY forecast: key trading points

• Market focus: Japan’s GDP fell by 1.8% in Q3
• Current trend: upward momentum
• USDJPY forecast for 18 November 2025: 156.00 or 154.00

Fundamental analysis

The USDJPY rate is trading above 155.00 ahead of a crucial meeting between Prime Minister Sanae Takaichi and Bank of Japan Governor Kazuo Ueda. Traders will closely watch the negotiations to gain insights into the Bank of Japan’s next policy steps.

Takaichi is expected to advocate for a cautious approach to any potential rate hike by the central bank while also planning a larger-than-expected fiscal stimulus package.

According to recently published data, Japan’s economy contracted by 1.8% year-on-year in Q3, marking the first decline in six quarters, as US tariffs weighed on the country’s economic activity.

USDJPY technical analysis

On the H1 chart, the USDJPY pair is confidently rising, consolidating above the 155.00 mark. The Alligator indicator is moving upwards, confirming the current bullish momentum. Further growth towards the local resistance level at 156.00 is possible.

Today’s USDJPY forecast suggests that the pair may continue its upward momentum if buyers hold above 155.00. Conversely, a decline is possible if sellers regain control and firmly push the price below 155.00, triggering a correction towards the 154.00 support level.

Summary

The USDJPY pair continues to rise, trading above 155.00, with the yen coming under pressure from weak Q3 GDP data from Japan.

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