- In recent trading sessions, the USD/JPY currency pair has been attempting to recover from its four-month low losses, having fallen to the support level of 148.56.
- However, the rebound gains did not exceed the 150.30 level before stabilizing around 149.30 at the time of writing the analysis.
- The recent gains of the Japanese Yen have halted, as the US Dollar remained supported by escalating tariff threats from US President Donald Trump.
- In the latest developments, Trump ordered an investigation into potential tariffs on copper imports to boost US production of the crucial metal, while also confirming that tariffs on Canada and Mexico will "go forward" once the one-month delay period ends next week.
Japanese Yen Remains Strong
Despite the decline, according to licensed trading platforms, the Japanese Yen remained near its highest levels in several months, supported by strong expectations that the Bank of Japan will continue to raise interest rates this year after bullish inflation surprises in the fourth quarter. Investors are now focusing on a series of key economic reports due out on Friday, including industrial production, retail sales and inflation data in Tokyo, which may provide further clarity on the Bank of Japan's monetary policy outlook.
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Trading Tips:
The dollar-yen pair breaks important support levels. So, be sure to exploit the performance to think about new buying opportunities, but without risk.
Japanese Stock Prices Stabilize
During today's session, Thursday, and through stock trading platforms. Japan’s Nikkei 225 index rose 0.3% to close at 38,256, while the broader Topix index gained 0.73% to 2,736. Furthermore, the performance snapped a two-day losing streak and tracked gains in Wall Street’s main indexes. The moves came after US President Donald Trump raised hopes of another one-month pause in tariffs on imports from Mexico and Canada, while also proposing 25% tariffs on European cars and other goods.
Equity investors reacted to Nvidia’s earnings report, which highlighted strong demand for chips in the growing artificial intelligence sector. In Japan, shares of Seven & I Holdings plunged 11.7% after a proposed takeover by its founding family collapsed due to financing problems. Meanwhile, Itochu shares rose 4.3% after announcing that it decided not to continue participating in the Seven & I family purchase proposal.
USD/JPY Technical Analysis and Expectations Today:
According to recent trading, the general trend for the USD/JPY currency pair remains bearish. Stability below the 150.00 level will continue to motivate bears to control the trend and thus prepare for stronger losses, with the closest being 148.30 and 147.00, which in turn will move technical indicators towards strong oversold levels, and I see them as buying opportunities, but without risk. Conversely, and over the same time frame, a move above the resistance level of 152.60 will be important to break the current bearish outlook for the currency pair. The USD/JPY will be affected today by the announcement of a package of important US economic releases, led by the announcement of GDP growth and weekly jobless claims, along with the US durable goods orders reading.
Not to mention the signals that may come from global central bank officials about the future of tightening or not, and the path of US tariffs.
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