Created
: 2025.10.27
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
USD/JPY gathers strength above 153.00 on potential US-China trade deal
World FX news
Breaking news
USD/JPY gathers strength above 153.00 on potential US-China trade deal
New
2025.10.27 08:18
2025.10.27 08:18
2025.10.27 08:18
- USD/JPY strengthens to near 153.15 in Monday's early Asian session.
- US and China agreed on a framework for trade deal ahead of the Trump-Xi meeting.
- US CPI inflation rose 3.0% YoY in September, softer than expected.
The USD/JPY pair extends the rally to around 153.15 during the early Asian session on Monday. The Japanese Yen (JPY) softens against the US Dollar (USD) amid improved risk sentiment as the US and China have agreed on the framework of a potential trade deal.
Top US and Chinese economic officials on Sunday hashed out the framework of a trade deal for US President Donald Trump and Chinese President Xi Jinping to decide later on Thursday in South Korea. US Treasury Secretary Scott Bessent said that discussions on the sidelines of the ASEAN Summit in Kuala Lumpur had eliminated the threat of Trump's 100% tariffs on Chinese imports starting November 1.
Bessent further stated that he expects China to delay implementation of its rare earth minerals and magnets licensing regime by a year while the policy is reconsidered. Positive developments surrounding US-China trade negotiations boost the risk sentiment, which undermines the safe-haven currency like the JPY and creates a tailwind for the pair.
Nonetheless, softer US inflation data might reinforce the Federal Reserve (Fed) rate cut bets and drag the Greenback lower. Data released by the US Bureau of Labor Statistics (BLS) on Friday showed that the US Consumer Price Index (CPI) rose 3.0% YoY in September, versus 2.9% prior. This reading came in below the market expectation of 3.1%.
On a monthly basis, the CPI increased 0.3% following the 0.4% rise seen in August, while the core CPI increased 0.2%, compared to the market consensus of 0.3%. On a yearly basis, the core CPI was up 3.0% in September.
The JPY weakens against the USD, even as core inflation in Japan accelerated in September for the first time since May. The report came ahead of the Bank of Japan's (BoJ) policy meeting on Thursday, where the central bank is anticipated to keep the interest rates unchanged.
Japanese Yen FAQs
The Japanese Yen (JPY) is one of the world's most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan's policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors.
One of the Bank of Japan's mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen.
Over the last decade, the BoJ's stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential.
The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen's value against other currencies seen as more risky to invest in.
Last updated
: 2025.10.27
Related articles
Japan's Kihara: Important for currencies to move in stable manner reflecting fundamentals
21 minutes agoAustralian Dollar maintains position due to US-China trade optimism
22 minutes agoUS Dollar Index weakens below 99.00 as soft US CPI inflation data keeps Fed on track for rate cut
44 minutes agoNZD/USD gathers strength above 0.5750 on easing US-China trade tensions
2025.10.27 10:19EUR/USD gains ground toward 1.1650 ahead of German IFO Business Survey data
2025.10.27 10:18PBOC sets USD/CNY reference rate at 7.0881 vs. 7.0928 previous
2025.10.27 10:16
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
Japan's Kihara: Important for currencies to move in stable manner reflecting fundamentals
Japanese Chief Cabinet Secretary Minoru Kihara said on Monday, it is "Important for currencies to move in a stable manner reflecting fundamentals."
New
2025.10.27 11:32Australian Dollar maintains position due to US-China trade optimism
The Australian Dollar (AUD) edges lower against the US Dollar (USD) after opening from a gap up on Monday due to optimism over progress in the United States (US)-China trade negotiations.
New
2025.10.27 11:32US Dollar Index weakens below 99.00 as soft US CPI inflation data keeps Fed on track for rate cut
The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, trades on a negative note near 98.80 during the early Asian session on Monday. The DXY softens amid the prospect of a US rate cut after moderate inflation figures on Friday.
New
2025.10.27 11:09NZD/USD gathers strength above 0.5750 on easing US-China trade tensions
The NZD/USD pair attracts some buyers to around 0.5770 during the early Asian session on Monday. The New Zealand Dollar (NZD) strengthens against the US Dollar (USD) on renewed optimism around US-China trade talks.
New
2025.10.27 10:19EUR/USD gains ground toward 1.1650 ahead of German IFO Business Survey data
EUR/USD remains stronger for the fourth successive session, trading around 1.1640 during the Asian hours on Monday.
New
2025.10.27 10:18PBOC sets USD/CNY reference rate at 7.0881 vs. 7.0928 previous
On Monday, the People's Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead at 7.0881 compared to Friday's fix of 7.0928 and 7.1146 Reuters estimate.
New
2025.10.27 10:16GBP/USD trades with positive bias above 1.3300 amid softer USD; upside seems limited
The GBP/USD pair kicks off the new week on a slightly positive note and holds steady above the 1.3300 round figure during the Asian session, though it lacks follow-through buying.
New
2025.10.27 09:59French government faces no-confidence threat over wealth tax
France's Socialist party leader has threatened to bring down Prime Minister Sébastien Lecornu's government by Monday if their budget conditions are not met, Reuters reported on Friday.
New
2025.10.27 09:23Gold Price Forecast: XAU/USD tumbles to near $4,050 on renewed optimism around US-China trade talks
Gold price (XAU/USD) falls to around $4,065 during the early Asian session on Monday. The precious metal extends the decline as traders book profits following a prolonged record-setting rally.
New
2025.10.27 09:07ECB's Escriva: Current level of rates is appropriate
European Central Bank (ECB) Governing Council member José Luis Escrivá said that he is satisfied with current settings for borrowing costs, Bloomberg reported on Sunday.
New
2025.10.27 08:25Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
