empty
27.05.2025 07:35 PM
USD/JPY. Analysis and Forecast

This image is no longer relevant

The Japanese yen continues to weaken during intraday trading. One of the key factors putting pressure on the yen is Japan's decision to consider reducing the issuance of ultra-long-term bonds, which led to a drop in the yield on 30-year government bonds to the lowest level seen since May 8. This decline in yields reduces the yen's appeal as a safe-haven asset.

In addition, optimism following U.S. President Donald Trump's decision to postpone tariffs on goods from the European Union has further weakened demand for safe-haven assets, including the yen.

Nevertheless, investors remain cautious due to ongoing uncertainty surrounding U.S. trade policy and concerns about the country's worsening fiscal outlook. Expectations of further interest rate cuts by the Federal Reserve in 2025 also limit the U.S. dollar's ability to recover from its monthly low, which in turn caps the USD/JPY pair's upward momentum.

Given this, it would be prudent to wait for confirmation of a strong buying impulse before asserting that the pair has bottomed or preparing for a significant rally, especially with key macroeconomic data from the U.S. and Japan expected later this week.

From a technical perspective, the USD/JPY pair has not yet cleared the 200-hour simple moving average (SMA) on the hourly chart. Furthermore, oscillators on the daily chart remain in negative territory, indicating that bears still control the market. However, sustained strength above the key 144.00 level—along with a breakout above the 200-hour SMA—could pave the way for further recovery. Still, any move northward should be viewed as a selling opportunity near 144.80, which will likely be capped by the psychological barrier at 145.00.

This image is no longer relevant

On the other hand, the 143.00 round level provides immediate support ahead of the 142.20 level. A break below this area and acceptance below 142.00 would clearly mark a loss for the bulls today. The USD/JPY pair would then drop below intermediate support at 141.55, heading toward the 141.00 round level. The bearish trajectory could extend to the yearly low and potentially even below the psychological 140.00 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

The Whole World is a Stage, and Countries Are Its Actors... (A Limited Decline in Gold and a Rise in Bitcoin Are Possible)

Iran responded to the U.S. with a strike on an American military base in Qatar, thereby demonstrating its resolve for retaliation and confrontation. Markets reacted in a rather peculiar

Pati Gani 09:25 2025-06-24 UTC+2

The Market Has Moved On From the War

Does Iran want war? Judging by the symbolic attack on American bases in Qatar, Tehran does not appear eager to enter into an armed conflict with Washington — which

Marek Petkovich 07:19 2025-06-24 UTC+2

What to Pay Attention to on June 24? A Breakdown of Fundamental Events for Beginners

Very few macroeconomic reports are scheduled for Tuesday, and none are of significant importance. Essentially, the only one worth mentioning is the German Business Climate Index —

Paolo Greco 07:19 2025-06-24 UTC+2

GBP/USD Overview – June 24: No Confirmation of Destruction

The GBP/USD currency pair also traded relatively calmly on Monday. While there were some price "swings," many traders and analysts had expected a much more significant move. The dollar strengthened

Paolo Greco 03:45 2025-06-24 UTC+2

EUR/USD Overview – June 24: Iran Exits Talks and Launches a Retaliatory Strike

The EUR/USD currency pair traded extremely calmly on Monday, considering the intense fundamental backdrop that developed over the weekend. Recall that over the weekend, Donald Trump once again "changed

Paolo Greco 03:45 2025-06-24 UTC+2

Trump Keeps Hitting a Wall

There's a saying: "An irresistible force meets an immovable object." It describes an irreconcilable standoff where neither side is willing to compromise. In my view, Trump's "scythe," with which

Chin Zhao 00:12 2025-06-24 UTC+2

Should We Expect De-escalation in the Middle East?

The market has absorbed the news of U.S. strikes on Iran's nuclear facilities quite resiliently. Why did this happen, and why was the reaction relatively muted? These questions are unlikely

Chin Zhao 00:12 2025-06-24 UTC+2

What Will Powell Say?

Starting June 24, Fed Chair Jerome Powell will address Congress over two days, delivering the semiannual monetary policy report. On Tuesday, he will speak before the Senate Banking Committee

Irina Manzenko 00:12 2025-06-24 UTC+2

The Euro Gets a Knife in the Back

Trouble never comes alone. European industry is beginning to lose steam after rapid growth driven by a front-loaded surge in U.S. imports. The euro area is a net oil importer

Marek Petkovich 00:11 2025-06-24 UTC+2

XAU/USD. Analysis and Forecast

Today, gold is attracting new sellers. Amid a sharp escalation in the conflict between Iran and Israel, the United States conducted airstrikes on three Iranian nuclear facilities in Fordow, Natanz

Irina Yanina 17:59 2025-06-23 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.