The Japanese yen maintains a range consolidation against the US dollar; there are still opportunities for a pump 🔥

The Japanese yen seems to always lack real momentum against the US dollar 🌊. This week, the yen/USD continues to hover within a narrow range. Domestic political instability. Market risk sentiment is quite optimistic. This combination is not very favorable for the safe-haven yen.

Take a look at the data from Japan. The PPI in September rose by 3.1% year-on-year, which is higher than in August. Interestingly, the GDP figures for the third quarter of 2025 have been revised upward. Household spending has increased. Real wages are also rising. All of this provides a reason for the Bank of Japan to raise interest rates again before the end of the year 📈. I think this is an important signal.

The situation is different on the dollar side. Buyers are not very enthusiastic. It seems that the Federal Reserve may adopt a more accommodative policy. US inflation fell again in September, and the market seems to be convinced that there will be multiple rate cuts in the coming months. That's it.

The monetary policies of the two countries are heading in different directions. This difference will likely continue to put downward pressure on the USD/JPY. However, traders are still observing. They probably want more certain signals 🔍. Let's wait and see.

Technically, the USD/JPY needs to break through 147.00 to confirm a downward trend. If that's the case, the next stop could be the support zone of 146.30-146.20. Further down? It could be 145.35, or even the psychological level of 145.00 📉. Who knows.

If it goes up, there may be new selling pressure around 147.75-147.80. This should hinder the momentum towards 148.00. But if it breaks through? That could trigger short covering, challenging the 200-day moving average near 148.75, followed by 149.00 and the monthly high of 149.15 🚀.

Overall, although the Japanese yen feels a bit weak in the short term, in the medium term, based on the difference in policies between the two central banks, the yen still seems to have potential for appreciation 🌕. This point is quite obvious.