Usdjby extends on the negative side, and the Trump tariff threat weakens by 50 % of the dollar morale
The US dollar still loses the ground against the Japanese yen, as green investors sell high fears about the American economy path. The USDJPY currency pair decreased by 0.9 % at the opening of the New York session- the largest daily decrease within about a month of trade at 142.58 at the time of writing this report.
The opposite winds of the dollar are from multiple directions
The last decline of the dollar fell due to a sudden increase in the inflation rate in Japan in April, which was printed by 3.5 %, the highest level in two years. This raised the possibility of a more strict monetary system by Bank of Japan during the second quarter.
Meanwhile, the return on the 30 -year -old US Treasury bonds in recent days has reached its highest level since the recession in 2007 as concerns about the sustainability of US debt. This scenario does not herald the feelings of the US dollar and adds the downward pressure. The decline on Friday was the seventh loss in the last ten trading sessions, regretting the USDJPY trading pair.
US President Donald Trump threatened a 50 % new tariff for all imports from the European Union starting from June 1 and 25 % of the tariffs on iPhone devices outside the United States. Trump’s comments, which were made on Friday, were released on the market, which led to the renewal of fears of the global economy. He had previously reduced the initial definitions by 20 % on a basket of European Union products by half until July 8. The tariff system is likely to add this pressure to US economic expectations, which limits the upper direction of USDJPY.
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Usdjpy prediction
Usdjby momentum indicates a possible continuation of the negative aspect less than 143.02. The husband is likely to find initial support at 142.44. An extended control component by the sellers will pay the procedure less to test the second support in 142.00.
On the contrary, momentum can turn into the upper direction if Usdjpy exceeds 143.02. In this case, the husband is likely to rise and test 143.66. The breaking of this level will nullify the narration of the downside, and the resulting momentum can extend for the 144.16 test.
