Dollar falls against yen during Trump's visit to Japan
2025-10-28 17:51:04
On Tuesday (October 28), the yen strengthened, pushing the USD/JPY exchange rate below the yen level. This move can be seen as a market reaction to US President Trump's visit to Japan, during which he met with Japan's newly elected Prime Minister Sanae Takaichi.
During the visit, the two leaders declared the U.S.-Japan relationship had entered a "new golden era" and signed two documents:
A formal trade agreement that imposes a 15% tariff on Japanese exports;
An agreement on the supply of rare earth metals.
According to multiple media reports, Sanae Takaichi plans to nominate Trump for the Nobel Peace Prize and plans to invest approximately $550 billion in the U.S. economy.
Technical Analysis
(Source: Yihuitong)
Drawing a regression channel from the key low recorded on September 17th, a rising structure can be clearly seen, which effectively reflects the major price movements (marked with arrows):
1 and 3 rebound from the lower track of the channel;
2. Reversal from the upper channel rail;
4 Enters the consolidation phase near the channel median line, at which time the supply and demand relationship tends to be balanced.
The exchange rate's pullback from the median line can be seen as a sign of a shift in market sentiment, meaning that bears may be targeting the lower track of the channel. However, the following two points should be noted:
The 151.50 mark is an important support level, which was firmly held between October 21 and 22;
The USD/JPY exchange rate has failed to close above 153 yen several times, forming a suspected "double top" pattern, which has further strengthened bearish confidence.
Whether the exchange rate can fall to the lower track of the regression channel depends largely on the overall fundamental background:
Trump's international schedule continues as traders await his meeting with Chinese President Xi Jinping.
Key events this week include the Federal Reserve's interest rate decision on Wednesday and the Bank of Japan's on Thursday, with the latter being particularly closely watched given Japan's recent leadership changes.
These developments could significantly change sentiment in the USD/JPY market, and traders should be prepared for a potential spike in volatility.
At 17:47 Beijing time, the USD/JPY exchange rate was 151.941/952, down 0.61%.
During the visit, the two leaders declared the U.S.-Japan relationship had entered a "new golden era" and signed two documents:
A formal trade agreement that imposes a 15% tariff on Japanese exports;
An agreement on the supply of rare earth metals.
According to multiple media reports, Sanae Takaichi plans to nominate Trump for the Nobel Peace Prize and plans to invest approximately $550 billion in the U.S. economy.
Technical Analysis
(Source: Yihuitong)
Drawing a regression channel from the key low recorded on September 17th, a rising structure can be clearly seen, which effectively reflects the major price movements (marked with arrows):
1 and 3 rebound from the lower track of the channel;
2. Reversal from the upper channel rail;
4 Enters the consolidation phase near the channel median line, at which time the supply and demand relationship tends to be balanced.
The exchange rate's pullback from the median line can be seen as a sign of a shift in market sentiment, meaning that bears may be targeting the lower track of the channel. However, the following two points should be noted:
The 151.50 mark is an important support level, which was firmly held between October 21 and 22;
The USD/JPY exchange rate has failed to close above 153 yen several times, forming a suspected "double top" pattern, which has further strengthened bearish confidence.
Whether the exchange rate can fall to the lower track of the regression channel depends largely on the overall fundamental background:
Trump's international schedule continues as traders await his meeting with Chinese President Xi Jinping.
Key events this week include the Federal Reserve's interest rate decision on Wednesday and the Bank of Japan's on Thursday, with the latter being particularly closely watched given Japan's recent leadership changes.
These developments could significantly change sentiment in the USD/JPY market, and traders should be prepared for a potential spike in volatility.
At 17:47 Beijing time, the USD/JPY exchange rate was 151.941/952, down 0.61%.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
