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Why is the Japanese yen rising against the US dollar today?

The yen is strengthening due to increased demand for safe-haven assets, along with weakening momentum in the US dollar ahead of important economic data releases. This has provided solid support for the yen in today’s trading.

The Japanese yen continues to record notable gains against the US dollar, as the USD/JPY chart on the H1 timeframe shows an extension of the upward wave that began after forming a strong bottom at the blue-marked support zone.

The yen’s strength has become more evident as the price broke above the short-term moving averages, accompanied by a clear rise in the MACD indicator, which reflects improving bullish momentum in favor of the yen. The pair is now approaching a key resistance area represented by the red levels, while simultaneously testing the descending trendline drawn from previous highs.

This upward movement reflects a cautious sentiment toward the US dollar before key economic data, while the yen benefits from safe-haven demand and improving sentiment across Asian markets.

However, the next move largely depends on the price’s ability to break above the descending trendline. A successful breakout could support continued upward movement, while failure may push the pair back into a corrective phase.