empty
25.03.2025 07:09 PM
USD/JPY. Analysis and Forecast

This image is no longer relevant

The USD/JPY pair is retreating from the psychological level of 151.00, reached earlier on Tuesday, though this pullback is not accompanied by significant selling pressure. The Japanese yen is attracting buyers amid hawkish comments from the Bank of Japan, despite disappointing PMI data from Japan.

According to the minutes of the Bank of Japan's January meeting, the need for further monetary tightening remains if positive economic prospects continue. BoJ Governor Kazuo Ueda emphasized that the goal is to achieve stable prices and that the bank is ready to adjust its policy if inflation reaches the 2% target. This fuels expectations that rising wages will impact inflation, supporting the case for higher interest rates.

However, hopes for less damaging U.S. trade tariffs, a peace agreement between Russia and Ukraine, and stimulus measures in China are holding traders back from aggressively betting on a stronger yen. Meanwhile, the U.S. dollar maintains its strength, supported by positive PMI data from the U.S., which also helps keep the USD/JPY pair elevated.

This image is no longer relevant

From a technical perspective, the breakout above the 150.00 level — coinciding with the 200-period Simple Moving Average (SMA) on the 4-hour chart — is seen as an important bullish signal.

This image is no longer relevant

A positive Relative Strength Index (RSI) on the daily chart supports the outlook for further gains. Pullbacks are likely to be viewed as buying opportunities, remaining limited by the psychological support at 150.00. However, a break below this level could open the path to support zones at 149.30–149.25 and lower. Failure to defend the 148.60 level would shift the short-term bias in favor of the bears.

If bullish traders can hold above 151.00, this may lead to a test of the monthly high around 151.30, followed by a move toward the 200-day SMA near 151.75, and then to the psychological level of 152.00. The rally could extend to intermediate resistance at 152.30 en route to the round level of 153.00.

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

DXY. The Dollar Holds Out Hope for a Recovery

Today, the U.S. Dollar Index (DXY), which tracks the greenback's performance against a basket of major currencies, is in a phase of bullish consolidation after reaching an almost one-month high

Irina Yanina 11:31 2025-05-09 UTC+2

Markets Will Open Their Eyes and Close Their Ears

"Better go and buy stocks right now! Thanks to the White House's trade policy, the U.S. will attract $10 trillion in investment. This country will be like a rocket going

Marek Petkovich 11:10 2025-05-09 UTC+2

The U.S. and U.K. Sign a Trade Agreement

The British pound fell in response to the news that the U.S. and the U.K. had signed a trade agreement. However, there are many nuances that need to be clarified

Jakub Novak 09:31 2025-05-09 UTC+2

Has Everyone Started Believing Trump Again?

The U.S. dollar resumed its upward trajectory, while several risk assets dropped sharply after U.S. President Donald Trump stated that he expects the upcoming trade talks with China, scheduled

Jakub Novak 09:28 2025-05-09 UTC+2

The European Union Prepares New Tariffs Against the United States

It has come to light that the European Union is planning to impose additional tariffs on U.S. exports worth €95 billion if current trade negotiations with President Donald Trump's administration

Jakub Novak 09:25 2025-05-09 UTC+2

GBP/USD Overview – May 9: The Bank of England Confuses Traders Even More

The GBP/USD currency pair moved downwards first and then upwards on Thursday, indicating that the market has not yet decided how to interpret the Bank of England's meeting results

Paolo Greco 04:05 2025-05-09 UTC+2

EUR/USD Overview – May 9: Powell and the Fed Changed Nothing

On Thursday, the EUR/USD currency pair continued to trade within the same sideways channel, clearly visible on the hourly chart, almost until the evening. As we warned, the outcome

Paolo Greco 04:05 2025-05-09 UTC+2

BoE Is Concerned About the Economy

I regularly monitor three central banks, each representing an almost entirely different approach to monetary policy. On Thursday, the Bank of England cut interest rates, citing concerns over slowing economic

Chin Zhao 01:35 2025-05-09 UTC+2

The Fed Chair Is Steadfast as Steel

Everyone has already had time to review the results of the recent Federal Reserve meeting. In this article, I want to highlight a few positive points for the U.S. dollar

Chin Zhao 01:16 2025-05-09 UTC+2

GBP/USD: Bank of England Cuts Rates, Trump Signs Trade Deal with London

On Thursday, the Bank of England delivered a widely expected 25 basis point interest rate cut, and Donald Trump announced the conclusion of a trade agreement with the United Kingdom

Irina Manzenko 00:28 2025-05-09 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.