empty
24.04.2025 11:35 AM
USD/JPY. Analysis and Forecast

This image is no longer relevant

The Japanese yen maintains a bullish tone despite certain headwinds and remains in focus as renewed global risk aversion fuels demand for safe-haven assets.

Diminishing hopes for a swift resolution to the U.S.–China trade conflict, along with speculation that Japan may reach a deal with the U.S. and growing expectations that the Bank of Japan (BoJ) may raise interest rates, are all supporting demand for the yen. Additionally, the widening policy divergence between the Federal Reserve and the BoJ adds further pressure on the dollar, favoring the strength of the Japanese currency.

Recent comments by Japan's Finance Minister Katsunobu Kato have highlighted the country's growing concerns over U.S. tariff policy and its impact on financial markets. The uncertainty created by these tariffs could indeed pressure Japan's economy, a concern echoed by BoJ Governor Kazuo Ueda, who signaled that monetary policy measures might be necessary.

The visit of Economic Revitalization Minister Ryosei Akazawa to the U.S. for tariff negotiations may prove to be a key step toward mitigating negative effects on Japan's economy. Still, investors remain optimistic about the likelihood of a BoJ rate hike in 2025, reflecting confidence in a sustained rise in inflation above the 2% target.

Meanwhile, expectations of rate cuts from the Federal Reserve are driving a significant divergence in monetary policy between the U.S. and Japan. Traders are already pricing in a renewed Fed easing cycle, expected to begin in June, with at least three rate cuts forecast by the end of the year.

Technical Outlook:

  • The overnight close above the 143.00 level serves as an important bullish signal for USD/JPY. Hourly chart oscillators remain in positive territory, potentially sustaining buying interest around the 142.45–142.40 zone.
  • A drop below the psychological 142.00 level could expose the pair to further downside toward the 141.10–141.00 area, with additional support seen around the 100- and 200-hour SMAs, and an intermediate floor at 140.50. A break below the key 140.00 mark would pave the way for deeper losses.

On the other hand, a renewed push above 143.00 may encounter resistance near 143.55 or yesterday's high. A sustained breakout above 144.00 would likely trigger a stronger rebound in USD/JPY.

This image is no longer relevant

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

GBP/USD Overview – June 2: Another Surprise from Donald Trump

The GBP/USD currency pair experienced low volatility on Friday, but last week's events can already be overlooked — Trump never sleeps. Traders barely had time to recover from last Thursday's

Paolo Greco 03:55 2025-06-02 UTC+2

EUR/USD Overview – June 2: The American Circus Gains Momentum

The EUR/USD currency pair traded calmly on Friday, but this calm will not last long. Last week, particularly on Thursday, another storm erupted in the market, caused by a familiar

Paolo Greco 03:55 2025-06-02 UTC+2

EUR/USD. Hello June: ISM Indices, Eurozone Inflation, ECB Meeting, and May Nonfarms

The economic calendar for the upcoming week is packed with important events. The first week of every month is traditionally the most informative for EUR/USD traders, and June will

Irina Manzenko 01:48 2025-06-02 UTC+2

U.S. Dollar: Weekly Preview

The economic news background in the U.S. will be very strong. It's the beginning of a new month, so reports on business activity, the labor market, job openings, and unemployment

Chin Zhao 00:52 2025-06-02 UTC+2

British Pound: Weekly Preview

The British pound is currently experiencing what is arguably one of its best periods in the last 15 years. Of course, during such a long period, there have been moments

Chin Zhao 00:52 2025-06-02 UTC+2

Euro: Weekly Preview

The euro continues to experience no issues in its current trajectory. I would even say it hasn't had such a good period in quite a long time. Most importantly, this

Chin Zhao 00:52 2025-06-02 UTC+2

XAU/USD. Analysis and Forecast

Gold is declining below the $3300 level today. U.S. PCE data met expectations. A shift in trade flows is helping the U.S. dollar regain positive momentum. This is also undermining

Irina Yanina 17:37 2025-05-30 UTC+2

Inflation Is Almost Under Control

While the euro continues to hold its ground against the dollar, European Central Bank (ECB) Governing Council member Fabio Panetta indicated during an interview today that inflation in the eurozone

Jakub Novak 13:40 2025-05-30 UTC+2

USD/CAD. Analysis and Forecast

The USD/CAD pair is attempting to regain positive momentum today, though traders remain cautious ahead of the key U.S. Personal Consumption Expenditures (PCE) Price Index release. As a preferred inflation

Irina Yanina 13:22 2025-05-30 UTC+2

EUR/USD. Analysis and Forecast

The EUR/USD pair continues to struggle to recover after rebounding from the 1.1200 level reached earlier, showing a moderately negative bias, although the decline remains limited. The U.S. dollar

Irina Yanina 13:19 2025-05-30 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.