Forex Trading Tools and Services

Currencies USD/JPY

Japanese Yen Weaken in Advance of BoJ Policy Decision as USD Advances Following Fed

  • BY
  • September 18, 2025
  • 0 Comments

Japanese Yen continues to weaken against a firmer US Dollar, following post-FOMC losses as markets hold out for the Bank of Japan’s policy release on Friday. Japanese Core Machinery Orders weaker than forecast and political turmoil have acted to weigh on the JPY, while the rate cut and dovish inflation prospects from the Fed helped underpin a USD advance. Though, expectations of the BoJ to continue gradual policy normalization and reduction of US-Japan rate differentials are set to cap steeper JPY losses. Traders are on the edge before the BoJ’s two-day gathering, with short-term direction dependent on policy guidance and near-term US data releases. KEY LOOKOUTS • Eyes will be on Friday’s decision and direction regarding Japan’s interest rate path, with market expectations for continued policy normalization. • The Fed’s recent rate cut and hints at further easing sit against Japan’s tightening bias, influencing USD/JPY momentum. • Soft Japanese Core Machinery Orders indicate domestic headwinds, whereas US jobless claims and Philly Fed statistics might influence short-term moves. • USD/JPY is resisted around 147.40–147.50, and support is seen around 146.00–145.50, prime zones for traders to observe. The Japanese Yen continued its weakening against the US Dollar on Thursday, weighed down by soft local data and political tension before the policy meeting of the Bank of Japan. The rebound in the USD after the Fed cut interest rates further supported the decline in the JPY, driving USD/JPY past the 147.00 level. Nonetheless, hopes of BoJ gradual policy normalization and the closing of rate differentials with the US are probably going to put a ceiling on further losses. Dealers now remain on their guard, looking towards Friday’s BoJ update for clearer guidance, before US macro releases later today might add further near-term volatility. Japanese Yen continued to weaken against a recovering US Dollar, with USD/JPY rising past 147.00 in anticipation of the BoJ policy meeting. Poor Japanese data and Fed-induced USD strength took its toll on the JPY, although policy divergence will cap heavier losses. Market participants now look towards Friday’s BoJ announcement for short-term guidance. • The Japanese Yen dropped for a second consecutive day against the US Dollar. • USD/JPY surged above the 147.00 handle in Thursday’s Asian session. • Soft Japanese Core Machinery Orders provided additional pressure on the Yen. • Domestic political instability cast doubts on imminent BoJ tightening. • The US Fed reduced rates by 25 bps but indicated inflation risks still persist, supporting USD demand. • Markets anticipate the BoJ to leave rates unchanged on Friday but seek clues on policy direction. • Major technical levels indicate resistance at 147.40–147.50 and support at 146.00–145.50. The Japanese Yen lost further ground against the US Dollar as investors focused on the forthcoming Bank of Japan policy meeting. The mood soured after Japan’s Core Machinery Orders report indicated a deeper-than-anticipated drop, pointing to persistent economic weakness. Domestic political uncertainty also bore down on the currency, with rumors that the BoJ might be likely to hold back from tightening. At the same time, the recent rate cut by the Fed and dovish comments over inflation gave the US Dollar new tailwinds to threaten the Yen’s plight. USD/JPY DAILY CHART PRICE SOURCE: TradingView Though the currency is weak now, there are still expectations that the BoJ will stay on its gradual path of policy normalization. A strong labor market, a positive trade environment, and the pursuit of the 2% inflation goal all suggest a central bank that will not back off its longer-term tightening policy. Investors are thus proceeding cautiously, with the two-day BoJ meeting under spotlight as markets seek more definitive guidance on the timing and frequency of future rate hikes. Meanwhile, geopolitics and general market sentiment are likely to have a major say in influencing safe-haven demand for the Yen. TECHNICAL ANALYSIS USD/JPY’s recovery above 147.00 indicates reviving short-term momentum, although the pair is confronted with a stiff resistance zone around 147.40–147.50. A breakthrough above this area may open the door to more gains towards 148.00 and potentially the 200-day SMA levels around 148.75. To the negative, support at 146.20 is followed by the critical 146.00 psychological level. A strong fall below this zone may target the 145.50–145.45 area, which if breached, might lead to a more significant correction towards 145.00. FORECAST If USD/JPY manages to hold up well over the 147.00 handle, the buyers may drive the pair up towards the resistance region of 147.40–147.50. A successful breach over this barrier could pave the way for further upside towards 148.00 and the 200-day SMA around 148.75, with chances to test the region of 149.00–149.15 if buying momentum persists. On the other hand, inability to stay above 147.00 may ignite fresh selling pressure, with near-term support at 146.20 and 146.00. A clean break below these levels might bring into focus the 145.50–145.45 zone, which protects the important 145.00 psychological level. A firm break below this zone would prove a more significant corrective phase for the pair.

Read More
Currencies USD/JPY

Japanese Yen Remains Steady Against USD Due to BoJ-Fed Policy Convergence Capping Downside

  • BY
  • September 10, 2025
  • 0 Comments

Japanese Yen moved sideways against the US Dollar on Wednesday, burdened by a mixed bag of fundamental signals. Japanese political uncertainty and a better global risk sentiment capped the safe-haven appetite for the Yen, while a rate hike by the Bank of Japan in the second half of this year provided support. At the same time, growing bets on a US Federal Reserve rate cut next week limited the Dollar’s upside. With markets awaiting key US inflation data, the USD/JPY pair is likely to remain range-bound, though the broader policy divergence suggests the downside potential for the Yen remains limited. KEY LOOKOUTS • Expectations of a BoJ rate hike by year-end versus imminent Fed rate cuts continue to shape USD/JPY dynamics. • Prime Minister Ishiba’s resignation introduces uncertainty, which can delay BoJ policy normalization. • Near-term USD direction will be determined by upcoming PPI and CPI releases. • Support is located at 146.30–146.20, with resistance at 147.75–148.00, capping the pair’s upside. The Japanese Yen traded flat against the US Dollar on Wednesday in a tug-of-war between supportive and restrictive forces. On the one side, hopes that the Bank of Japan will increase interest rates later in the year, underpinned by better economic data and increasing household consumption, limit downside risks to the Yen. On the other side, political uncertainty after Prime Minister Ishiba stepped down and upbeat global risk appetite diminishes its safe-haven attractiveness. Meanwhile, the Dollar stays firm ahead of major US inflation releases, with hopes of a Fed rate cut keeping strong upside momentum at bay. Consequently, USD/JPY remains in a tight range, with markets waiting for fresh direction. Japanese Yen traded range-bound against US Dollar as expectations of BoJ rate hikes were countered by political risk and high global appetite for risk. With Fed rate cuts imminent and US inflation data pending, USD/JPY is expected to remain capped in the vicinity of important technical levels. • Japanese Yen remains range-bound against the US Dollar amidst conflicting market cues. • Political risk in Japan post-PM Ishiba’s resignation dampens the Yen. • Robust global equity markets cut safe-haven demand for JPY. • Favorable Japanese economic news and increasing household consumption boost expectations for a BoJ rate hike. • The US Federal Reserve is all but certain to lower rates at the next FOMC. • Traders wait for US PPI and CPI news for short-term direction in USD/JPY. • Important support is found at 146.30–146.20, with resistance at 147.75–148.00. The Japanese Yen is moving tentatively against the US Dollar as markets consider a combination of domestic and external factors. Domestically, hopes are rising that the Bank of Japan may increase interest rates by the year-end, amid improved recent trends in GDP growth, household consumption, and real wages. Meanwhile, political tension after Prime Minister Shigeru Ishiba’s resignation has added a new level of uncertainty, which can briefly pause the pace of policy normalization by the BoJ. This provides the context for a sensitive balance between economic stability and political tension in dictating Yen sentiment. USD/JPY DAILY CHART PRICE SOURCE: TradingView Worldwide, the safe-haven demand for the Japanese Yen has eased with US and Asian equity markets reaching new highs, indicating the upbeat risk appetite of investors. In the meantime, the market eye is on the Federal Reserve, with markets widely expecting the beginning of a rate-cut cycle next week after softer-than-anticipated US labor market data. This Fed-BoJ policy divergence still dictates investor positioning in the currency space, with the Yen stuck in a consolidative mode as market participants wait for guidance from future US inflation releases. TECHNICAL ANALYSIS USD/JPY is still in the process of consolidation after rebounding from the 146.30 area support level, although the absence of follow-through and poor daily momentum indicators indicate minimal upside risk. Resistance is likely at the 147.75–148.00 area, which may draw new selling pressure and limit further advancement. On the downside, support is near 147.00, with a breach below paving the way for a test of the 146.30–146.20 region. A move below 146.00 would consolidate bearish grip and risk the pair lower toward 145.35 and the psychological 145.00 level. FORECAST If purchasing momentum picks up, USD/JPY may challenge the 147.75–148.00 resistance level, where it is expected that sellers will re-appear again. A firm break above this could induce short-covering, paving the way toward the 148.75 area close to the 200-day Simple Moving Average. Continued advances beyond this level would turn sentiment in the bulls’ favour and could further extend the recovery of the pair. Conversely, inability to breach the 148.00 resistance may attract fresh selling pressure. Near-term support lies at the 147.00 psychological level, with a further decline threatening the 146.30–146.20 horizontal bottom. A clean breakdown below 146.00 would be interpreted as a new bearish catalyst, underpinning the fall towards 145.35 before challenging the psychological 145.00 barrier.

Read More
Currencies USD/JPY

Japanese Yen Remains Stable as BoJ-Fed Policy Divergence Offset Geopolitical Hopes

  • BY
  • August 19, 2025
  • 0 Comments

Japanese Yen (JPY) remains range-bound versus the US Dollar (USD) as conflicting fundamental signals remain vigilant. The hawkish policy by the Bank of Japan and prospects of a rate increase by the end of the year underpin the JPY, while the hoped-for rate cuts in September by the US Federal Reserve showcase an abrupt policy divergence. But hope for a Russia-Ukraine peace agreement undermines safe-haven demand, capping Yen’s gains. Market players now anticipate major events, such as the publication of FOMC Minutes, Fed Chairman Jerome Powell’s address at the Jackson Hole Symposium, and worldwide PMI releases, for new guidance in the USD/JPY cross. KEY LOOKOUTS • Hopes of a year-end BoJ rate increase are in contrast with the Fed’s forecasted September rate reduction, supporting JPY. • Expectations of a Russia-Ukraine peace agreement diminish safe-haven appetite, serving as a headwind for the Yen. • Global Flash PMIs on Thursday and US housing statistics may impact sentiment and USD demand. • FOMC Minutes and Powell’s Jackson Hole speech will be important to set expectations around the Fed’s rate-cut trajectory and USD/JPY direction. The Japanese Yen is still trading in a range against the US Dollar as investors balance contrasting monetary policy directions and geopolitical events. Although the hawkish tone of the Bank of Japan and expectations for a year-end rate hike support the JPY, the Federal Reserve’s planned September rate cut highlights a stark policy divergence. Nevertheless, hopes for a possible Russia-Ukraine peace agreement have eased safe-haven demand, limiting Yen appreciation. Traders then shift their attention to pivotal drivers such as FOMC Minutes, Fed Chair Powell’s address at the Jackson Hole Symposium, and international PMI announcements for better indications on the USD/JPY pair’s next direction. Japanese Yen holds in a narrow range as BoJ’s hawkish rhetoric is pitted against the Fed’s anticipated rate cuts. Geopolitical optimism regarding a Russia-Ukraine peace agreement keeps safe-haven demand muted, while soon-to-be-released Fed cues and PMI readings will dictate USD/JPY direction. • The Japanese Yen continues to be held within a three-week trading band versus the US Dollar. • The Bank of Japan will be expected to raise interest rates by year-end, underpinning JPY strength. • The Federal Reserve is widely expected to start reducing rates in September, leading to a steep policy divergence. • Hopes for a potential Russia-Ukraine peace agreement diminishes safe-haven demand for the Yen. • Japan’s better-than-expected Q2 economic growth leaves the door ajar for BoJ tightening. • Investors are following FOMC Minutes, the Jackson Hole speech by Powell, and US housing releases closely for USD signals. • Charts indicate resistance at 148.00 and support at 147.00, a break either way poised to determine the new trend. The Japanese Yen is well within a tight range against the US Dollar with investors weighing conflicting monetary policy expectations with changing global sentiment. The Bank of Japan has indicated normalization policy commitment as markets look for an eventual rate hike by the end of the year. Such a position is informed by better-than-projected domestic growth and updated inflation projections, pointing to Japan’s resilience in its economy in the face of external shocks. Meanwhile, the Federal Reserve is set to initiate its rate-cutting cycle in September, adding to a sharp policy contrast between the two central banks. USD/JPY DAILY PRICE CHART SOURCE: TradingView Simultaneously, geopolitical events are setting the tone for risk appetite and demand for safe-haven assets such as the Yen. Hopes of a potential peace agreement between Russia and Ukraine, stoked by plans for top-level talks, have relieved some investor angst and cut safe-haven flows into the JPY. Market participants are now paying close attention to significant events like FOMC Minutes releases, Fed Chair Jerome Powell’s address at Jackson Hole later this week, and international PMI numbers, which are likely to give better cues about worldwide economic momentum and dictate the next direction in the USD/JPY price. TECHNICAL ANALYSIS USD/JPY also remains to consolidate in a clearly defined band, with the 148.00 level being a significant resistance on the upside and the 147.00 area providing near-term support. A break above 148.00 could potentially pave the way for additional advances towards the 148.55–148.60 area and maybe even the psychological 149.00 level. On the other hand, a fall below 147.00 would risk exposing the pair to lower losses toward the support zone around 146.20, with a fall beneath 146.00 turning the bias in favor of bearish momentum. Overall, the range-bound nature accentuates indecision, and traders would prefer waiting for a firm breakout before positioning for the subsequent trend. FORECAST If USD/JPY is able to resist below the 148.00 resistance, it may draw new buying pressure, opening the door to a move higher towards the 148.55–148.60 area, which is a key retracement point. A clean break above this area would propel bullish energy and take the pair toward the 149.00 psychological level, where additional gains might be tested based on Fed commentary and sentiment. Conversely, if the pair is unable to maintain the uptrend and drops below the 147.10–147.00 support level, selling interest may become more significant, and the 146.20 area reached last week may come under threat. A break below this level would shift the bias to the sellers’ advantage, and the pair would become susceptible to re-testing the 146.00 level, with potential for further losses if safe-haven buying returns or Fed policy expectations move more dovishly.

Read More
Currencies USD/JPY

Japanese Yen Jumps to Three-Week High as BoJ’s Hawkish Tone Disadvantages Soft USD

  • BY
  • August 14, 2025
  • 0 Comments

Japanese Yen jumped to a three-week high versus a relatively soft US Dollar on Thursday, its third consecutive day of increase, after the Bank of Japan (BoJ) and the Federal Reserve developing differing monetary policy outlooks pushed demand for the safe-haven currency. Increasingly anticipation of further BoJ policy normalization and interest rate hikes by year-end was offset by increasing bets of a September Fed rate cut, leaving the USD on the back foot. Although risk-on mood and worries over Japan’s decelerating real wage growth might dampen further advances, the overall market environment continues to be skewed in favor of JPY bulls, with the market waiting for the next US Producer Price Index prints and Japan’s Preliminary Q2 GDP for new direction. KEY LOOKOUTS • BoJ hawkishness vs. expected September Fed rate cuts remains supportive of JPY strength. •  US Producer Price Index (PPI) and Japan’s Preliminary Q2 GDP will be driving factors for USD/JPY action. • Consistent break below 147.00 SMA could fasten downward momentum towards 146.00 and 145.30 support levels. • Strong equity markets globally could limit safe-haven buying, but underlying JPY bullishness is intact. Japanese Yen continued its three-session rally on Thursday by rising to a three-week high against a generally weaker US Dollar as policy divergence between the Bank of Japan and the Federal Reserve fueled market flows. Bets that the BoJ will continue to hike rates by the end of the year, defying fear over poor wage growth and possible economic pressures, were sharply contrasted with increased wagers for a rate cut from the Fed in September. Though optimistic global risk appetite has supported equity markets, it has had scant impact on curbing demand for the safe-haven JPY, which remains supported ahead of influential US PPI data and Japan’s Preliminary Q2 GDP release. Japanese Yen rose to a three-week high, buoyed by predictions of additional BoJ rate increases and weakening US Dollar amidst hanging bets for Fed rate cuts. Market participants now await US PPI and Japan’s Q2 GDP releases for new market direction. • Japanese Yen rises for the third straight day to a three-week high against the USD. • BoJ set to maintain policy normalization by possibly raising rates by the end of the year. • US Dollar is burdened with September Fed rate cut expectations. • Risk-on mood does not penetrate robust demand for the safe-haven JPY. • Real wages in Japan drop for the sixth consecutive month, worrying about economic recovery. • Technical breakdown below 147.00 SMA can potentially set the stage for 146.00 and 145.30 supports. • US Producer Price Index and Japan’s Preliminary Q2 GDP are watched for new direction by traders. The Japanese Yen continued its three-day winning streak on Thursday, as the currency moved higher for a third day against a weaker US Dollar. The strength of the currency was largely fueled by growing policy divergence between the Bank of Japan and the Federal Reserve. Investors are growing more and more convinced that the BoJ will continue along its track of policy normalization, with an interest rate increase likely within the year. This is in marked contrast to bets in the market that the Fed would reduce interest rates in September, a sentiment underpinned by weaker US economic data and moderating inflationary pressures. USD/JPY DAILY PRICE CHART SOURCE: TradingView In spite of overall favorable global risk sentiment that has driven stock markets to new highs, safe-haven demand for the Yen continues to be strong. Apprehensions regarding Japan’s domestic economy—underscored by six straight months of falling real wages and decelerating corporate goods price inflation—have not dissuaded optimistic sentiment towards the currency. The traders now focus on future economic data releases, such as the US Producer Price Index and Japan’s Preliminary Q2 GDP, that may bring new insights regarding the economic environment and future policy action by both the central banks. TECHNICAL ANALYSIS USD/JPY’s continuous break and acceptance below the 200-period Simple Moving Average (SMA) on the 4-hour chart, near the 147.00 level, indicates a bearish inclination for the pair. The Relative Strength Index (RSI) is heading towards oversold levels, indicating that there is a chance of a temporary consolidation or weak rebound before more selling. Any attempted rebound is set to meet stiff resistance at the 147.00 level, now serving as a pivotal level. A bold fall below current lows would expose the market to a decline towards 146.00, with further support levels at 145.40-145.30 and then the 145.00 psychological level. FORECAST If USD/JPY is able to regain and hold above the 147.00 resistance-turned-support, a short-covering bounce could play out, driving the pair to the 147.45–147.50 area. A breach of this area might see more buying interest, setting the stage for a drive to the 148.00 psychological mark. This positive scenario would probably need more robust US data, bullish Fed commentaries, or a slowdown in BoJ rate hike expectations. Conversely, sustained pressure below 147.00 would maintain the bearish momentum and create room for a slide towards the July 24 low of 146.00. A clean break below this level might fuel losses towards the 145.40–145.30 support level, with the 145.00 level being the next significant downside target. Deteriorating US data or reiterating of BoJ’s hawkish policies would reinforce this bearish expectation.

Read More
Currencies USD/JPY

Japanese Yen Maintains Neutral Stand as BoJ Rate Uncertainty Combined with Increased Geopolitical Tensions

  • BY
  • June 17, 2025
  • 0 Comments

Japanese Yen (JPY) is still directionless following the Bank of Japan’s (BoJ) most recent policy announcement that left interest rates stagnant and described a gradual reduction in bond buying. The mixed signals from the BoJ, combined with uncertainty around US-Japan trade negotiations and geopolitical tensions in the Middle East, have all contributed to the neutral position in Yen. Though anticipation of an early 2026 rate hike and safe-haven flows support the currency to some extent, fading hopes for a 2025 hike and worries about surging oil prices bear down on its future prospects. The USD/JPY cross still grinds on in a consolidation mode as traders wait for more definitive signals from both central banks and global politics. KEY LOOKOUTS • There is uncertainty regarding Bank of Japan’s future action, with markets pricing in potential Q1 2026 rate hikes, though 2025 hike prospects remain muted. • Failure of Prime Minister Ishiba and President Trump’s negotiations on automobile and import tariffs may affect JPY sentiment. • Continued tensions between Israel and Iran may sustain demand for the safe-haven Yen. • Investors look for more clarity regarding the Federal Reserve’s rate-cut schedule, which will determine USD performance and the direction of the USD/JPY pair. Japanese Yen is at present going sideways amidst a messy combination of domestic and international factors, after the Bank of Japan chose to keep its policy rate steady while scaling back bond purchases. With declining chances of a 2025 interest rate hike and no resolution in US-Japan trade talks in sight, the Yen finds it hard to find traction. But still-hanging hopes of policy change in 2026 as well as rising Middle Eastern geopolitical tensions still provide some support through safe-haven buying. Traders are meanwhile on the lookout for any signals ahead from the Federal Reserve that could determine the next major move in the USD/JPY exchange. Japanese Yen remains range-bound on conflicting cues from the Bank of Japan and increased geopolitical tensions. Although safe-haven demand provides a floor, doubts over future rate increases and outstanding US-Japan trade negotiations maintain the outlook guarded. • BoJ leaves interest rates steady, with a plan to gradually taper purchases of bonds over to 2027. • Markets are skeptical of a 2025 rate increase, although expectations still exist for a potential move in early 2026. • USD/JPY is trading level, a sign of no strong directional bias in the face of conflicting fundamentals. • US-Japan trade negotiations are at a standstill, with tariff issues unresolved following the G-7 summit. • Geopolitical tensions are increasing, with the Israel-Iran conflict increasing safe-haven demand for the Yen. • Japan’s Finance Minister cautions about the weakening of the Yen and rising energy prices having negative effects on the economy. •  Investors look to Fed cues, with the USD weakened by expectations of more rate reductions in 2025. The Japanese Yen is in a phase of consolidation as the markets absorb the Bank of Japan’s recent policy move and its dovish approach towards future rate hikes. As the BoJ left interest rates unchanged, it also laid out a slowing-down of government bond purchasing that goes into 2027, which indicated that the approach to policy normalization would be slow. Governor Kazuo Ueda made it clear that the tapering of bonds was designed for curbing market volatility and was not caused by fiscal concerns. Traders are, however, split on whether the central bank will continue hiking rates in 2026, with ongoing uncertainties surrounding global trade and domestic inflation targets. USD/JPY DAILY PRICE CHART SOURCE: TradingView Internationally, tensions between Japan and the United States continue to plague sentiment with no breakthrough in the tariff talks during the G-7 summit. Prime Minister Ishiba’s efforts to scrap U.S. tariffs on Japanese cars were also met with opposition, leaving bilateral trade in an uncertain position. Moreover, geopolitical tensions have mounted through the Israel-Iran conflict, contributing to jitters in global markets. With rising energy prices and the weakening of the Yen jeopardizing Japan’s import-based economy, officials are in no mood for more turmoil. Market players are now carefully observing domestic as well as global developments for insight into the longer-term direction of the Yen. TECHNICAL ANALYSIS USD/JPY pair is consolidating against the important psychological level of 145.00, a breakdown above which is expected to validate a bullish breakout from a multi-week trading range. Momentum indicators on the daily chart are beginning to turn positive, suggesting the potential for an upward push toward the 145.45 resistance zone, followed by the 146.00 level and possibly the 146.25–146.30 region. On the downside, immediate support lies near 144.50–144.45, with a break below 144.00 exposing further downside toward 143.55 and 143.00. A decline below the mid-142.00s might precipitate a further correction, marking a restart of the wider downtrend. FORECAST Should the USD/JPY pair be able to hold out above the 145.00 psychological level, it may unlock fresh bullish pressure. A firm break above this mark may drive the pair to the next resistance at 145.45, and then towards 146.00 and the May 29 high of 146.25–146.30. The bettering momentum on technicals indicates the likelihood of an upward extension, particularly if geopolitical risk continues and the US Dollar strengthens on hawkish expectations for the Fed. Conversely, inability to remain above the 145.00 level may lead to a near-term correction. Initial support is at the 144.50–144.45 area, with firmer support at 144.00. A decisive break below this level may open the door for a deeper decline toward the 143.55 intermediate zone and the 143.00 round figure. Further downside could expose the 142.80–142.75 area and potentially the lower boundary of the consolidation range in the mid-142.00s, indicating a possible continuation of the broader bearish trend.

Read More
Currencies USD/JPY

Japanese Yen Weighed Down by Stronger US Dollar and Risk Averse Markets as US NFP Report Looms

  • BY
  • June 6, 2025
  • 0 Comments

Japanese Yen continues to be under pressure for the second day in a row with dismal domestic data coupled with increasing hopes over US-China trade negotiations detracting from the safe-haven currency. Meanwhile, the US Dollar stays supported ahead of the crucial Nonfarm Payrolls (NFP) report, though gains remain limited due to growing expectations of a Fed rate cut later this year. In spite of the prevailing bearishness surrounding the Yen, the disparity between the monetary policies of the Bank of Japan and the Federal Reserve, as well as ongoing geopolitical concerns, could assist in limiting further declines in the JPY and limiting substantial upside to the USD/JPY pair. KEY LOOKOUTS • Market players are keenly observing the release of future US Nonfarm Payrolls figures, which might have a considerable impact on USD/JPY direction based on the strength of the labor market and implications for Federal Reserve policy. • Speculation that the Bank of Japan might continue to hike rates as the Federal Reserve ponders cutting in 2025 might cap USD upside and underpin JPY resiliency on the medium term. • The USD/JPY currency pair is probing important resistance at the 144.00 level, and a breakout above it—especially above 144.40—can be seen as a sign of fresh bullish momentum. • Declining Japanese household spending and wages increase recession possibilities, which can weaken consumer activity and negatively impact JPY sentiment unless met with accommodative policy actions. Japanese Yen continues to decline against the US Dollar as a mix of weak Japanese economic data and upbeat sentiment regarding US-China trade relations suppresses demand for the safe-haven currency. The USD/JPY pair is still underpinned, though momentum is subdued ahead of the US Nonfarm Payrolls (NFP) release, which may tilt expectations for future Fed policy actions. As the Yen is under downward pressure, losses for it could be capped by the Bank of Japan’s growing hawkish attitude and ongoing geopolitical risks that might revive demand for safe-haven assets. The Japanese Yen is under pressure in weak domestic data and stronger US Dollar in the run-up to the NFP report. Nevertheless, BoJ’s hawkish bias and global tensions might limit additional JPY losses. Traders remain cautious around crucial technical levels. • The Japanese Yen is still on the backfoot for the second consecutive day on account of disappointing domestic spending and wage figures. • The US Dollar receives support from repositioning in anticipation of the pivotal US Nonfarm Payrolls (NFP) report. • Divergent policy expectations—BoJ tilting hawkish, Fed anticipating rate cuts in 2025—may cap any further USD/JPY gains. • Hopes regarding resumed US-China trade talks diminish the safe-haven demand for the Yen. • The 144.00 and 144.40 levels are pivotal resistance levels for USD/JPY, with bullish strength depending on a breakout. • A fall below 142.75 may open up the pair to further losses towards the support area of 141.60. • US fiscal worries and global tensions can prevent the JPY from falling sharply, acting as a safeguard for the currency. The Japanese Yen is currently under pressure downwards as recent economic figures from Japan indicate slowing consumer expenditure and falling real wages. These trends are of concern to Japan’s economic prospects, particularly as private consumption contributes a major percentage of the nation’s GDP. Concurrently, increased hopes about the return of US-China trade negotiations have reduced the appeal of the Yen as a safe-haven currency, and investors have turned towards riskier assets. In the meantime, the US Dollar is still relatively firm as traders look towards the release of the US Nonfarm Payrolls (NFP) soon, which will be an important gauge of the US labor market’s health and can have an impact on subsequent Federal Reserve policy making. USD/JPY DAILY PRICE CHART CHART SOURCE: TradingView Despite the current pressure on the Yen, expectations that the Bank of Japan will maintain a tighter monetary policy contrast with the Federal Reserve’s potential rate cuts next year, creating a policy divergence that could limit further depreciation of the Yen. Additionally, ongoing geopolitical risks and concerns about global economic stability continue to support demand for safer assets, including the Yen. Japan-US trade talks are also advancing, as Japan has put on the negotiating table a more flexible US auto tariff approach that could further impact currency trends. Overall, while the Yen is strained in the short run, there are many factors that could stabilize the currency in the future. TECHNICAL ANALYSIS USD/JPY pair has been consolidating within a specific range, establishing a pattern since the beginning of the week. Strong resistance is seen at the 144.00 and 144.40 levels, the latter of which closely corresponds to the 100-period Simple Moving Average (SMA) on the 4-hour chart. A clean break above those levels might reflect a change in favor of bullish traders, who might send the pair to the psychological 145.00 level. On the negative side, support levels near 143.50, 143.00, and below near 142.70 and 141.60 will be pivotal in deciding whether bearish pressure continues. Oscillator indices indicate mild bearish inclination at the moment, meaning that any rallies will encounter selling interest at resistance levels. FORECAST The short-term USD/JPY outlook indicates cautious upside potential if the pair is able to convincingly break and hold above the important resistance of 144.40. A move up could be bullish, prompting traders to drive the pair towards the next psychological hurdle at 145.00. The scenario would be supported by firm US economic numbers or increased risk appetite, maybe fueling additional USD strength versus the Yen. In contrast, if USD/JPY is unable to break resistance and instead drops below support levels around 143.50 and 143.00, the pair may encounter fresh selling pressure. An extended drop below 142.70 may intensify the downtrend, exposing lower support areas around 142.10 and 141.60. This bearish scenario would be driven by poorer US data, rising risk aversion, or rising bets for a more dovish Federal Reserve, which would favor the lower-yielding Yen.

Read More
Currencies USD/JPY

Japanese Yen Weakens on BoJ’s Dovish Forecast, Traders Look to Governor Ueda’s Remarks for Rate-Hike Hints in the Future

  • BY
  • May 1, 2025
  • 0 Comments

Japanese Yen has continued to fall for the third straight day, after the Bank of Japan (BoJ) left its policy rate unchanged at 0.5% and cut its inflation and growth projections. The BoJ’s conservative attitude, in anticipation of US tariffs and a potential de-escalation of US-China trade tensions, has prompted the weakening of the Yen. Investors are now turning to BoJ Governor Kazuo Ueda’s next words for clues on the direction of interest rates ahead, with hopes that the BoJ will lift rates in 2025. Even so, wider market forces, such as softening US economic numbers and even potential Federal Reserve rate cuts down the road, indicate the Yen can hold some support in the near term, with traders keeping close watch on key technical levels for further guidance. KEY LOOKOUTS •  Market participants are eagerly looking forward to the remarks of BoJ Governor Kazuo Ueda to take cues on future possible rate increases and the central bank’s views on inflation and economic growth, which will decide the direction of the Yen. •  The recent US GDP decline and soft ADP employment numbers are sparking fears of a possible US recession, which can impact the monetary policy of the Fed and the USD/JPY pair. • US-China trade talks developments, or any potential easing, have the potential to meaningfully affect sentiment in markets, with potential to influence the safe-haven demand of the Yen. • The USD/JPY currency pair is making a move toward a critical resistance point at 144.00. A breakout here could trigger more gains, or a drop below 142.60 might bring momentum back into the hands of Yen bulls. Japanese Yen is under sustained pressure after the Bank of Japan left rates unchanged at 0.5% and reduced its growth and inflation projections, indicating a more dovish stance. Market participants are now looking to BoJ Governor Kazuo Ueda’s next comments to gauge the central bank’s future rate-hike path, with some speculating that rates could increase in 2025 as inflation slowly accelerates. Meanwhile, softer US economic news, such as a decline in GDP and less-than-anticipated private-sector job growth, may induce a more dovish Federal Reserve policy, potentially favoring the Yen. In the meantime, global risk sentiment, such as any US-China trade talks news, will be important in determining near-term direction for the Yen. Important technical levels for the USD/JPY pair are also in the spotlight, with resistance at 144.00 and support at 142.60 guiding the next possible directions. The Japanese Yen remains soft in the wake of BoJ’s dovish bias, with the market anticipating Governor Ueda’s words for clues on upcoming rate hikes. Downward revisions in US economic data and global trade news bring added uncertainty, with major technical levels for USD/JPY still firmly in the market’s sights for possible action. • The Bank of Japan maintained its policy rate at 0.5% and reduced its growth and inflation projections, indicating a conservative stance. • Market participants are looking for clues from BoJ Governor Kazuo Ueda on future rate hikes, with speculation of a rate hike in 2025. • US GDP fell in Q1 2025, and private-sector employment figures were lower than expected, sparking fears of a recession. • Expectations of Fed rate reductions later in the year by the markets may pressure the US Dollar, propping up the lower-yielding Yen. • Any news in US-China trade negotiations, especially de-escalation, may impact risk sentiment and trigger demand for the Yen as a safe-haven currency. • Important resistance at 144.00 and support at 142.60 are key levels for the USD/JPY pair, dictating future possible price movements. • The BoJ’s projection of inflation at around 2% over the period 2027 implies Japan’s economic situation is going to have a major influence on future monetary policy. The Japanese Yen has been under stress after the Bank of Japan’s (BoJ) announcement to maintain its policy rate unchanged at 0.5% alongside reducing its forecast for economic growth and inflation. This action mirrors the BoJ’s conservative perspective under the cloud of global trade tensions, especially with the US. The central bank has stated that it will also keep economic conditions under close observation, though while lowering its near-term inflation estimates, it maintained that it expected inflation to stick around its 2% goal in the medium term. Market focus now shifts to remarks from BoJ Governor Kazuo Ueda, who should also offer clarity regarding the way ahead for interest rates. USD/JPY Daily Price Chart Sources: TradingView Deteriorating US economic fundamentals, also comprising a negative print in GDP along with muted-than-forecast private sector employment, accompany weakening Yen. These events have fueled speculation that the Federal Reserve will reduce rates in the near term, potentially supporting the Yen as a lower-yielding currency. Furthermore, continued uncertainties surrounding global trade, especially US-China relations, can have profound effects on market sentiment and the Yen as a safe-haven asset. With these dynamics changing, investors will be keeping a close eye on any commentary from central banks and major economic indicators that could impact the path of the Yen over the next few months. TECHNICAL ANALYSIS USD/JPY pair is probing important resistance points, and the 144.00 level has become an important stumbling block. A move above the level would indicate more bullish pressure, which could propel the pair into higher resistance areas. On the negative, the 142.60-142.65 region is regarded as key support, and a break below this region could spark a turnaround, moving the pair downward. The 100-period Simple Moving Average (SMA) on the 4-hour chart is also acting as support, while the general market sentiment, guided by the BoJ’s dovish policy and US economic releases, will probably drive the next significant moves. The sellers will be keeping a close eye on these technical levels in order to decide the direction of the pair in the near future. FORECAST USD/JPY pair crosses above the 144.00 resistance level, it may create further upside momentum, with the next important target in the vicinity of the 144.60-144.65 zone. This will indicate a continuation of the current bullish

Read More
Currencies USD/JPY

Japanese Yen Remains Dovish Before BoJ Speech Despite Weaker Domestic Figures and USD Recuperation

  • BY
  • March 19, 2025
  • 0 Comments

The Japanese Yen continues to dip after the Bank of Japan announced that it maintained interest rates levels and weaker than anticipated domestic economic data, which include weak machinery orders and unfavorable business sentiment. Although Japan’s trade balance showed improvement and wage growth prospects remain strong, investors remain cautious ahead of BoJ Governor Ueda’s speech for clues on future monetary policy moves. Meanwhile, a modest recovery in the US Dollar from a multi-month low has pushed USD/JPY above mid-149.00s, with technical indicators suggesting further upside potential. Yet, market players wait for significant cues from the BoJ as well as the next FOMC meeting before taking bold directional wagers. KEY LOOKOUTS • Market players wait for Ueda’s words for definite indications of future rate hikes and the central bank’s policy direction in the near future. • The 150.00 psychological level continues to be a crucial resistance; a consistent breakout would set off new bullish momentum towards 150.75–151.00 levels. • Deteriorating machinery orders and weakening business sentiment remain in focus for JPY, while trade balance has improved and wages have firmed up. • Attention turns towards the US Federal Reserve policy move, which could have a bearing on USD strength and overall USD/JPY direction. The Japanese Yen also remains on the weaker side as markets absorb the Bank of Japan’s move to leave interest rates unchanged and lower-than-anticipated domestic data such as disappointing machinery orders and falling business sentiment. Although a tighter trade balance and improving wage deals provide some respite to Japan’s economic prospects, investor sentiment continues to be risk-off ahead of BoJ Governor Ueda’s speech, where he is set to give a clue on when rate hikes can be expected. On the other hand, a slight rally in the US Dollar has driven USD/JPY past mid-149.00s, and technical readings are indicating possible additional upside if the pair successfully crosses the 150.00 resistance mark. All eyes now focus on the result of the FOMC meeting, which will potentially mold the path for USD/JPY. The Japanese Yen continues to be weak in the face of weak domestic data and the BoJ’s continued rate stance. Now, the markets are waiting for Governor Ueda’s speech and the FOMC result for more direction. A breach above the level of 150.00 may ignite fresh upside in USD/JPY. • The Japanese Yen stays low following the Bank of Japan maintaining its interest rate unchanged at its latest policy meeting. • Sluggish domestic data, such as declining machinery orders and declining business sentiment, weighed on the JPY. • Japan’s trade balance turned positive, driven by robust exports and lower imports. • USD/JPY pushed beyond mid-149.00s on the back of a modest rebound in the US Dollar from a multi-month low. • The resistance in the USD/JPY technicals stands at 150.00, and a clear breakout would encourage additional upside into the 150.75–151.00 zone. • Highly expected are comments from BoJ Governor Ueda for a pointer towards additional interest rate hike cycles and a monetary policy cue. • Markets eagerly await the outcome of the FOMC meeting, as this will drive the next decision in the USD/JPY. The Japanese Yen is still under pressure after the Bank of Japan left its short-term interest rate target unchanged. The action was taken as concerns over Japan’s economic prospects have been increasing, with recent figures indicating a fall in machinery orders and a decline in business sentiment among manufacturers. While the trade balance of the country improved as exports grew and imports decreased, these encouraging trends were dampened by general economic uncertainty. The central bank also admitted that economic growth and inflation risks are still high, making investors hesitant to anticipate the timing of any subsequent policy changes. USD/JPY Daily Price Chart Chart Source: TradingView In the meantime, focus turns to BoJ Governor Kazuo Ueda’s speech later this week, set to provide perspective on the direction of future bank policy. Other investors are paying close attention as well to what comes out of the two-day FOMC meeting in America, which would have implications on global financial markets and overall currency trends. In contrast to domestic woes, the news from Japan’s quarterly spring labor talks came as a welcome relief, with companies consenting to healthy wage increases for the third year in a row — something that could aid consumer consumption and push inflation higher in the months ahead incrementally. TECHNICAL ANALYSIS USD/JPY has evidenced renewed vigor after rebounding above the mid-149.00s, reflecting buying bias. The latest price action indicates that the buyers are taking over, particularly after a breakout above the important moving averages on the short-term charts. Nevertheless, the pair has a significant resistance level around the 150.00 psychological level, and a break above this level could lead to further upside. To the disadvantage, instant support exists in the proximity of 149.20–149.00, and breaking below that zone can reflect on the impending stall or change of trend to the current uptrend. Buyers and sellers are set to keep close watch at these levels in awaiting verification of the upcoming trend direction. FORECAST As long as the general market mood continues to lean toward the US Dollar and BoJ plays defensive, USD/JPY will quietly drift upward. A clean penetration above the all-important 150.00 psychological level would lay the groundwork for additional gains, with the possible target being in the 150.75–151.00 area in the short term. Upside momentum could be supported by solid US economic fundamentals and any hawkish undertones in the FOMC meeting. Additionally, positive wage growth in Japan could have inflationary ramifications, but with no policy changes indicated by the BoJ, the Yen would find it challenging to regain resilience. Alternatively, if BoJ Governor Ueda signals a tighter outlook or in case of any disappointing US economic data, USD/JPY may be on the downside. A breakout below the 149.00 level may mark a reversal of recent trend and send the currency back into correction. Additive weakness may see the pair decline towards the 148.20–148.00 region, and if mood turns sharply risk-averse,

Read More
Currencies USD/JPY

Japanese Yen Bulls Reign Supreme as BoJ Tightening Bets Pile Up and USD Falters

  • BY
  • March 10, 2025
  • 0 Comments

The Japanese Yen is strengthening against the US Dollar, fueled by rising bets on further rate hikes by the Bank of Japan (BoJ) and decreasing interest rate differentials between the US and Japan. Latest statistics revealing sustained inflation and robust wage increases in Japan has reaffirmed prospects of sustained BoJ policy firming, sending Japanese government bond yields to multi-year highs. Conversely, the US Dollar is weakening with rising expectations that the Federal Reserve will start to reduce interest rates later this year after weaker-than-anticipated job market data. Also, geopolitical risks and renewed US trade policy concerns are increasing the safe-haven demand for the Yen, keeping the USD/JPY currency pair bearish. KEY LOOKOUTS • Market expects additional BoJ tightening due to ongoing inflation and wage growth, underpinning Japanese Yen strength versus the US Dollar. • Constricting interest rate differential continues to favor the lower-yielding Yen, putting additional downside pressure on the USD/JPY currency pair. • Sluggish US employment data and economic worries support multi-Fed rate cut expectations, further undermining the Dollar outlook. • Increasing global trade tensions and economic uncertainty boost investor demand for the Yen as a haven currency. The Japanese Yen continues to be on a solid ground as markets increasingly factor in additional interest rate increases by the Bank of Japan (BoJ) due to increasing wage growth and lingering inflation in the local economy. This has seen the yields of Japanese government bonds shoot up, even further reducing the interest rate spread between Japan and the United States. In the meantime, the US Dollar falters under increasing speculation that the Federal Reserve will launch a rate-cutting cycle after weak labor market data. Contributing to the Yen’s attractiveness is its safe-haven status, which gathers strength in the face of global trade uncertainty and economic worries over US trade policy. These factors combined continue to bear down on the USD/JPY pair, pointing to further downside momentum in the near term. The Japanese Yen remains firm on increasing hopes of BoJ rate hikes and declining US-Japan yield differentials. Poor US economic data and safe-haven buying further dampen the USD/JPY pair. • Rising inflation and robust wage growth enhance the prospects of additional interest rate hikes by the Bank of Japan. • Japanese government bond yields jumped to 2009 highs, aiding Yen appreciation. • The US-Japan interest rate spread is still decreasing in favor of the Japanese Yen compared to the US Dollar. • Current US jobs data and economic reports increase anticipation of several Fed rate cuts in the current year. • Global uncertainties and trade tensions boost the safe-haven appeal of the Japanese Yen. • USD/JPY continues to be bearish, with support at around 146.00 and room for further downward movement towards 145.00. The Japanese Yen is still strengthening as hopes rise for additional interest rate increases by the Bank of Japan (BoJ). Robust wage growth and ongoing inflation in Japan have supported the view that the central bank will further tighten its monetary policy. This follows a rise in government bond yields and a significant shift in Japan’s economic landscape, where labor unions are demanding substantial wage hikes. The overall mood indicates increasing optimism over Japan’s economic strength and the BoJ’s willingness to intervene against inflationary pressures. USD/JPY Daily Price Chart Chart Source: TradingView Conversely, the US Dollar is in a bearish mood as a result of less-than-anticipated employment figures and increasing fears about the US economic outlook. Market participants now expect the Federal Reserve to start lowering interest rates ahead of schedule, further eroding the Dollar’s attractiveness. Also, doubts regarding US trade policy and global economic threats continue to fuel the safe-haven appetite for the Japanese Yen. Such divergence in Japan-US central bank policies and attitudes towards the economy continues to remain a major impetus in tightening the Yen’s grip in world markets. TECHNICAL ANALYSIS The USD/JPY pair presents a bearish picture as it continues to hover below major resistance levels, signifying downward movement. A persistent dip below the 147.00 level can validate further weakening, with the support areas of 146.50 and 146.00. The Relative Strength Index (RSI) is near oversold levels, implying that while the pair might witness some short-term correction or minor pullback, the overall trend will be bearish. Overall, the technical configuration is in favor of sellers, with any bounce likely to meet stiff resistance around 148.00 to 148.70 levels. FORECAST USD/JPY pair is able to stay above the 147.00 mark and increases its bullish strength, it could try to undergo a short-term bounce-back. Under such circumstances, the initial resistance would most probably be encountered at the 148.00 level, followed by a stronger resistance near the 148.65–148.70 area. A prolonged passage above this area could initiate further upward momentum towards the psychological 149.00 level. If positive sentiment intensifies, the pair could even rise towards the 149.80–150.00 level, where major supply could restrict further advancements. Conversely, if the pair breaks and holds below 147.00, it may validate additional bearish pressure. The subsequent pivotal support is at 146.50, and a strong break below here would trigger the way for a deeper fall towards 146.00. Further selling momentum can see the pair probe the 145.25–145.00 region, before further support in the vicinity of the 144.80–144.75 region. The overall technical perspective is one of vulnerability for further downside price action, and only strong bullish drivers would help turn the outlook in favor of the pair.

Read More
Currencies USD/JPY

Japanese Yen Reaches More Than Two-Month High Versus USD on BoJ Rate Hike Speculation and Global Risk Aversion

  • BY
  • February 20, 2025
  • 0 Comments

The Japanese Yen (JPY) has reached a more than two-month high versus the US Dollar (USD) as escalating speculation of further Bank of Japan (BoJ) rate hikes pushes Japanese government bond (JGB) yields to record-high levels. This narrowing differential rate enhances the Yen’s attractiveness, again fueled by worldwide risk aversion after US President Donald Trump threatened tariffs. Even with the Federal Reserve (Fed) hawkish bias, the USD cannot find footing, with investors watching for key support levels around the 150.00 psychological level for USD/JPY. If the bearish pressure persists, the pair may dip further, with resistance around 151.00-152.65 potentially capping any attempts at an upside. Market players now look to US economic data and Fed rhetoric for guidance. KEY LOOKOUTS • Higher bets on more BoJ rate hikes drive Japanese government bond yields up, bolstering the Yen and reducing the rate spread. • Investor morale deteriorates as US President Donald Trump hints at fresh tariffs, triggering global risk aversion and increasing demand for the safe-haven Japanese Yen. • The pair approaches the pivotal 150.00 psychological level, with a possible downside extension to 149.00 should bearish momentum continue. • Even with a hawkish Fed, the US Dollar fails to make headway, with future economic data and FOMC speeches likely to guide market direction. The Japanese Yen maintains its bullish run on increasing hopes of further Bank of Japan (BoJ) rate hikes and spiking Japanese government bond (JGB) yields. The narrowing rate gap bolsters the Yen, and the global risk aversion, which is fueled by US President Donald Trump’s threats of tariffs, adds to safe-haven demand. The US Dollar is still unable to attract buyers, despite the hawkish tone set by the Federal Reserve, and keeps USD/JPY trading below the 150.00 psychological level. Traders now look for major support levels, Fed policy indications, and future US economic data to drive the pair. The Japanese Yen rises as increased BoJ rate hike hopes and jumping JGB yields lift demand. Risk aversion is driven by Trump’s tariff threats, also helping the Yen. The US Dollar, however, lags in spite of the Fed’s hawkishness, leaving USD/JPY close to the pivotal 150.00 mark.  • Increasing hopes of further Bank of Japan (BoJ) rate hikes drive Japanese government bond (JGB) yields to their highest level in more than a decade. • The Japanese Yen jumps to a two-month high versus the US Dollar as the declining rate differential enhances its attractiveness. • US President Donald Trump’s proposals for fresh tariffs induce global risk aversion, and demand for the safe-haven Yen rises. • The pair approaches the pivotal 150.00 level, with additional downside potential towards 149.00 if bearish momentum persists. • In spite of the Federal Reserve’s conservative sentiment and inflationary worries, the US Dollar has a hard time gaining momentum versus the rising Yen. • Japan’s Trade Minister is set to discuss tariff exclusions with the US, something that may have implications on trade and currency trends. • Market participants look for significant US economic indicators, such as jobless claims and Fed speeches, to provide additional guidance on the USD/JPY currency pair. The Japanese Yen is still firming as hopes rise that the Bank of Japan (BoJ) will continue to raise interest rates. Increased Japanese government bond (JGB) yields are a sign of the central bank moving away from its extremely loose monetary stance, and this makes the Yen more appealing to investors. Further, the latest economic news, such as Japan’s better-than-expected Q4 GDP, back up the argument that the Japanese economy is healthy enough to digest a rise in interest rates. Such a move in monetary policy is regarded as being a pivotal decision for Japan while it faces the challenges of economic recovery and taming inflation. USD/JPY Daily Price Chart TradingView Prepared by ELLYANA Meanwhile, geopolitics and trade tensions contribute to the attractiveness of the Yen as a safe-haven currency. US President Donald Trump’s recent comments regarding new tariffs have disturbed world markets, and investors have turned to more secure assets such as the Yen for stability. Japan’s Trade Minister is also scheduled to discuss possible exemptions from the tariffs, underlining the current trade tensions. In contrast, while taking into consideration the Federal Reserve’s conservative stance with regards to next rate decisions, the US Dollar has not significantly appreciated, as market players still await forthcoming economic data and policy updates from the two nations. TECHNICAL ANALYSIS The USD/JPY pair flirts with key 150.00 psychological benchmark, with speculative traders closely looking at key supports and resistances. A clean break below 150.00 would further boost bearish momentum, driving the pair to the 149.60-149.55 area and then down to 149.00. Oscillators on the daily chart are still in negative ground, reflecting persistent selling pressure without yet showing signs of being oversold. On the upside, the 150.90-151.00 area now serves as a first resistance level, with any break above likely to initiate a short-covering rally to 151.40. Additional gains may encounter selling interest near the 152.00 level, and the 200-day Simple Moving Average (SMA) at 152.65 is an important pivot point for short-term traders. FORECAST If the USD/JPY pair can hold above the 150.90-151.00 resistance area, it may cause a short-term rebound. Breaking above the level could prompt buyers to take the pair towards the next important barrier at 151.40. Above this, additional upside may be challenged in the vicinity of the 152.00 psychological level, where selling pressure would be expected. But if bullish momentum persists, the level of 152.65, coinciding with the 200-day Simple Moving Average (SMA), will be an important level to monitor. A firm break above this would potentially set the stage for additional gains, drawing buyers into higher resistance areas. On the negative side, persistent bear momentum would lead USD/JPY to break below the pivotal 150.00 psychological support. A clean break below this level might boost the selling pressure, pushing the pair toward the subsequent support area of 149.60-149.55. If this level is also breached, the downtrend might continue towards the 149.00 level, followed

Read More