This USDJPY analysis reviews the currency pair from technical and fundamental aspects. It also features trend examination, price forecasts, support and resistance levels, and trading signals.
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USDJPY Analysis & Live Chart
USDJPY Fundamental Analysis
Bloomberg—The Japanese yen strengthened beyond 144 against the US dollar on Friday, continuing its upward trend from the previous day. This movement came after Tokyo’s core inflation figures were higher than analysts had expected.
Strong inflation data suggests that prices in Japan are rising steadily, which could push the Bank of Japan (BOJ) to consider raising interest rates soon. As a result, financial markets are now predicting a 25 basis point rate hike in July.
BOJ Governor Kazuo Ueda spoke on Friday, addressing the bank’s recent decision to lower its inflation forecasts. He explained that the downgrade was due to several global and domestic factors, such as growing risks to the global economy caused by uncertain trade policies, a decrease in cost-driven inflation, and falling crude oil prices.
Despite this revised forecast, Ueda made it clear that the central bank’s short-term decisions on interest rates would still focus on reaching the 2% inflation goal.
In addition to domestic economic data, the yen also gained strength from rising safe-haven demand. This was triggered by a US appeals court decision to restore former President Donald Trump’s reciprocal tariffs, reversing a previous federal court ruling.
In times of geopolitical or economic uncertainty, investors often turn to the yen as a stable asset, which helped boost its value further.
USDJPY Technical Analysis
The widget below calculates USD/JPY trends using multiple indicators, such as moving averages and oscillators. It allows you to review market trends across various timeframes easily.
The larger the timeframe, the more accurate the signals tend to be. Integrating this widget into your strategy and considering our fundamental news can help you make well-informed decisions.
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