USDJPY seeks direction as investors weigh risks

The USDJPY pair is consolidating around 149.75. The market is closely watching the trajectory of the US dollar. Find more details in our analysis for 2 April 2025.

USDJPY forecast: key trading points

• The USDJPY pair remains in consolidation
• The market avoids risk-taking while waiting for the first signals from the new round of US trade wars
• USDJPY forecast for 2 April 2025: 149.95

Fundamental analysis

The USDJPY rate is hovering around 149.75 on Wednesday. The Japanese yen continues to move sideways as the market stays in wait-and-see mode ahead of the new round of US President Donald Trump’s tariff wars.

Bank of Japan Governor Kazuo Ueda has warned that US tariffs could significantly impact global trade and economic growth.

Earlier this week, data revealed a deterioration in Japanese business sentiment for Q1. This has raised concerns about the potential effects of US tariffs on Japan’s export-driven economy.

The baseline forecast expects the Bank of Japan to raise interest rates by the end of 2025. However, fears over global trade and domestic economic uncertainty still cloud the outlook.

The USDJPY forecast is neutral.

USDJPY technical analysis

On the USDJPY H4 chart, the main scenario remains a sideways channel with boundaries at 148.70 and 150.25. For the pair to move towards the upper boundary of this channel, it must first break through the intermediate resistance at 149.95.

Summary

The USDJPY pair continues to consolidate within a sideways trend as investors await clarity on Trump’s next trade policy moves. There are too many global economic risks. The USDJPY forecast for today, 2 April 2025, expects the pair to remain directionless, with a potential climb towards 149.95.