USD/JPY Slides as Trump Visits Japan
The Japanese yen strengthened on Monday, pulling the USD/JPY platform rate below the ¥152 threshold. The move reflected a cautious reaction from currency markets to U.S. President Donald Trump’s official visit to Japan, where he met with the newly appointed Prime Minister, Sanae Takaichi.
During the talks, the two leaders announced the begin of a “new golden era” in U.S.–Japan relations and formalised two key agreements:
→ a trade deal introducing a 15% tariff on Japanese exports;
→ a partnership covering the supply of rare earth elements.
Media sources also report that Prime Minister Takaichi is considering nominating Trump for the Nobel Peace Prize, while committing to invest approximately $550 billion into the U.S. economy.
Technical Overview: USD/JPY
A regression channel drawn from the major low on 17 September outlines a well-defined upward pattern, capturing the key price actions (highlighted by arrows):
1 & 3 → rebounds from the channel’s lower boundary;
2 → reversal at the upper limit;
4 → consolidation near the median, signalling equilibrium between purchaviewrs and tradeers.
The current downward movement from the median suggests that momentum may have shifted in favour of the bears, who could now aim for the lower band of the channel. Still:
→ the ¥151.50 zone remains a significant support area, previously holding firm on 21–22 October;
→ bearish sentiment is also supported by the pair’s repeated inability to maintain gains above ¥153 — a setup resembling a Double Top pattern.
Whether USD/JPY continues its descent towards the channel floor will depend on several key factors:
→ Trump’s overseas tour, with markets awaiting his meeting with China’s president;
→ major central bank announcements this week — the Federal Reserve’s rate decision on Wednesday, followed by the Bank of Japan’s on Thursday, which is drawing extra attention given Japan’s recent change in leadership.
These upcoming developments could redefine the short-term outlook for USD/JPY, likely bringing heightened volatility across the market.
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