The USD/JPY currency pair has increased to 147.77, reflecting a rise of 0.34% after previous pressure from trade tensions between Canada and the United States eased following a tariff agreement. The pair formed a ‘tweezers bottom’ pattern near the year-to-date low of 146.54, suggesting a potential reversal in the downward trend.
To continue the bearish trend, USD/JPY must breach the 146.54 level, with subsequent targets at 141.64 and 139.58. A break upwards past 148.00 could lead to further advances towards 149.79.
Japanese Yen Performance
Today’s Japanese Yen performance shows its strength against the Euro, with various percentage changes noted against other major currencies.
What we are seeing with this most recent movement in USD/JPY is a reaction to shifting trade dynamics, particularly as the tension surrounding tariffs between Canada and the United States has eased. It has allowed the US dollar to recover ground, pushing the exchange rate higher to 147.77, an increase of 0.34%.
More importantly, the pattern that has formed—a tweezers bottom—near the low for the year at 146.54 suggests that downward momentum might be losing steam. When this type of formation appears, it often implies that selling pressure is weakening, and a potential reversal could be approaching. However, this is not confirmation of an uptrend. Instead, it signals an area where buyers have started entering the market.
If this pattern fails and the pair pushes below 146.54, that could indicate further declines. In such a scenario, traders should look towards 141.64 and 139.58 as the next zones of interest. On the other hand, if an upward move gains traction and clears 148.00, the next natural target would sit at 149.79.
Trading Opportunities
Beyond USD/JPY specifically, the Japanese Yen has also shown signs of strength against the Euro, suggesting broader movements in risk sentiment and monetary policy expectations. As these shifts occur, short-term opportunities may emerge.
For those trading derivatives, recognising price levels that hold or break will determine possible entry and exit points. Momentum around these areas is likely to be tested in the weeks ahead.
