empty
07.05.2025 07:33 PM
USD/JPY. Analysis and Forecast

This image is no longer relevant

Today, the Japanese yen reached a new daily low, which contributed to the rise of the USD/JPY pair to nearly the 143.50 level. This increase is driven by positive global sentiment sparked by news of trade negotiations between the U.S. and China, which negatively affects traditional safe-haven assets such as the Japanese yen.

However, there is a possibility that the Bank of Japan may revise its forecasts depending on the outcomes of trade talks between the U.S. and Japan. This could lead to an interest rate hike, especially amid rising inflation in Japan, which could support the Far Eastern currency.

Still, restrained demand for the U.S. dollar may limit the upward potential of the USD/JPY pair, as traders eagerly await the outcome of the two-day FOMC meeting on monetary policy, where the Federal Reserve is expected to leave interest rates unchanged.

This image is no longer relevant

From a technical perspective, the recent failure of the USD/JPY pair near the 200-period simple moving average (SMA) on the 4-hour chart serves as a bearish signal. Moreover, oscillators on the daily, hourly, and 4-hour charts remain in negative territory, suggesting that the path of least resistance for the USD/JPY pair remains to the downside. Therefore, any upward movement can be viewed as a selling opportunity near the 143.55 level, which is capped by the psychological level of 144.00. Above this round level lies a supply zone in the 144.25–144.30 level. If this zone is breached, it could trigger a short-covering rally, pushing spot prices toward the psychological level of 145.00.

On the other hand, the 142.35 level, which marks the weekly low, now protects against immediate declines in USD/JPY ahead of the 142.00 round level. A convincing break below 142.00 would leave spot prices vulnerable to further decline toward the next support zone around 141.60, with potential for a move down to the 141.00 round level.

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

USD/JPY. Analysis and Forecast

The USD/JPY pair is showing mixed dynamics: despite the general recovery of the US dollar, the Japanese yen is under pressure from intraday sellers amid a combination of negative factors

Irina Yanina 18:27 2025-06-03 UTC+2

GBP/USD. Analysis and Forecast

The GBP/USD pair is attracting sellers today, pulling back from yesterday's high. This pullback is associated with a moderate strengthening of the US dollar, which is exerting pressure

Irina Yanina 18:24 2025-06-03 UTC+2

Traders Didn't Believe the Japanese Regulator

The Japanese yen lost some ground against the US dollar after Bank of Japan Governor Kazuo Ueda hinted today that the central bank may continue to slow the pace

Jakub Novak 11:16 2025-06-03 UTC+2

Market startles monster

Over time, we get used to everything — the good and the bad. Investors have finally come to terms with the fact that they will have to build businesses under

Marek Petkovich 10:44 2025-06-03 UTC+2

Deteriorating U.S. Economic Conditions Bring Fed Rate Cuts Closer (Potential for Continued Decline in #USDX and EUR/JPY Pair)

Although the market has largely stopped reacting to incoming economic data—especially from the U.S.—and is more focused on the geopolitical and economic moves of Donald Trump, who is steering

Pati Gani 09:52 2025-06-03 UTC+2

Everything Is Still Working Against the U.S. Dollar

Despite U.S. President Donald Trump's efforts to secure more trade agreements, the U.S. dollar continues to decline sharply against several other assets as negotiations with China and Europe falter

Jakub Novak 09:09 2025-06-03 UTC+2

What to Pay Attention to on June 3? A Breakdown of Fundamental Events for Beginners

There are only two macroeconomic reports scheduled for Tuesday. Although the first report looks significant on its own and the second one is directly related to the U.S. labor market

Paolo Greco 06:53 2025-06-03 UTC+2

GBP/USD Overview – June 3: Trump Deals Another Slap to the Dollar

The GBP/USD currency pair surged upward again on Monday. Just as the British pound had started a correction and even consolidated below the moving average line, Trump once again announced

Paolo Greco 04:38 2025-06-03 UTC+2

EUR/USD Overview – June 3: A New Round of Escalation in the Global Trade War

As we predicted, the EUR/USD currency pair collapsed on Monday. However, the collapse was not of the pair but rather of the U.S. dollar. Recall that over the weekend

Paolo Greco 04:35 2025-06-03 UTC+2

Trump: Tariffs Cannot Be Canceled

Donald Trump is prepared to fight for "his tariffs" until the end—or until victory. It's important to remember that court battles are nothing new for the current U.S. president. During

Chin Zhao 00:38 2025-06-03 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.