- The Japanese yen rises to the top against the weakest dollar for the third consecutive day on Monday.
- The policy expectations fed by BoJ’s different JPY policy feeding and reviving JPY.
- The hopes of the US-Japan trade deal increase the support of JPY and the weight of the dollar pair/JPY.
The Japanese yen (JPY) remains on the front foot for the third consecutive day against the largest US dollar (USD) and withdraws the pair of the dollar/JPY below the mid -143.00 during the Asian session on Monday. The Strong Consumer Prices Index in Tokyo (CPI), which was issued on Friday, confirmed the market bets that the Bank of Japan (BOJ) will continue to raise interest rates. Moreover, commercial negotiator comments in Japan Ryezi Akazawa fueled their hopes of obtaining an imminent deal early this month and it turned out to be another factor for JPY lending.
Regardless of this, the tone of the generally weaker risk, the ongoing doubts related to trade, and geopolitical risks support safe JPY. The US dollar, on the other hand, is still depressed amid expectations that the Federal Reserve (Fed) will reduce borrowing costs in 2025 amid signs of relieving inflationary pressures, which represents a great difference compared to BOJ Falcon expectations. This supports additional estimate in the short term of low -yield JPY and indicates that a lower -resistant path for a USD/JPY pair is the downside.
The Japanese yen continues with its superior performance against the dollar, amid the contrary to BOJ expectations
- The Consumer Prices Index in Tokyo (CPI) exceeded the goal of the Bank of Japan, which is 2 % for three consecutive years, and pointed to sticky food inflation on Friday. This can add pressure to BOJ to raise interest rates again, which continues to support the demand for the Japanese yen,, and,,
- The last round of discussions with the Trump administration on the definitions had placed them on the right track towards a commercial deal early this month. Akazawa added that the two sides will meet again in front of the group of seven leaders.
- US President Donald Trump said on Friday that it would double the definitions of steel imports from 25 % to 50 %. Earlier, Trump criticized in China, saying that China violated a trade deal with the United States. The escalation comes after the Federal Appeal Court re -targeted Trump.
- On Sunday, Ukraine fired one of its largest drones on Russia, hitting five air bases deep inside Russian territory and destroying more than 40 aircraft. Meanwhile, Russia bombed Ukraine with missiles and drones hours before direct peace talks in Istanbul.
- Israel continued its uncompromising bombing of the Gaza Strip, while the Houthi rebels in Yemen claimed responsibility for a ballistic missile, which was intercepted, at Ben Gurion Airport near Tel Aviv. This maintains the geopolitical risks in playing and benefits the safe JPY.
- Meanwhile, PE PECE (PCE) was cooled to 2.1 % year on April from 2.3 % in the previous month. Moreover, the PCE price index, which excludes flying food and energy prices, increased by 2.5 % compared to 2.7 % in March.
- The data reaffirmed the expectations that the Federal Reserve will reduce its goal of short -term borrowing costs in September. Traders are also pricing the ability to reduce the second price in December. This drives the sale of the new US dollar and more pressure on the US dollar pair/JPY.
- Investors are now looking for important US macro versions for this scheduled week at the beginning of a new month, starting with the ISM Procurement Manager Index later on Monday. Regardless of this, the appearance of the Federal Reserve Chairman, Jerome Powell, will be seen in the short term.
USD/JPY can weaken less than 143.00 marks in numbers amid a declining technical preparation
Last week, near the Fibonacci tradition level failed by 61.8 % of the last fall of the monthly peak and a later decrease less than the SMA 200 (SMA) graph for 4 hours preferred pharmaceutical bears/JPY. This, in addition to the negative vibrations on the daily graphs/every hour, indicates that a less resistant path for immediate prices is still on the negative side and supports deeper losses horizons. Thus, some of the weakness of the 143.00 mark, on its way to the next relevant support near the 142.40 region, appears to be a clear possibility. The husband can eventually decrease to the 142.10, or the monthly depression that was touched last Tuesday.
On the other hand, SMA, which is 200 hours, may now operate on the graph for 4 hours, which are currently linked before Figure 144.00, as an immediate strong barrier. This is closely followed by the supply zone 144.25-144.30 USD/JPY The husband can aim to restore the psychological brand 145.00. The continuous force that exceeds the latter must pave the way for the transition to the horizontal area 145.65 on its way to the round shape 146.00 and the 146.25-146.30 region, or touching two weeks on Thursday.
US dollar price today
The table below shows the percentage of change in the US dollar (USD) against the main currencies listed today. The US dollar was the strongest against the Canadian dollar.
| US dollar | euro | GBP | JPY | CAD | Aud | Nzd | Chf | |
|---|---|---|---|---|---|---|---|---|
| US dollar | -0.19 % | -0.20 % | -0.27 % | -0.13 % | -0.31 % | -52 % | -0.14 % | |
| euro | 0.19 % | -02 % | -07 % | 0.06 % | -11 % | -0.36 % | 0.04 % | |
| GBP | 0.20 % | 0.02 % | -04 % | 0.08 % | -0.09 % | -0.34 % | 0.06 % | |
| JPY | 0.27 % | 0.07 % | 0.04 % | 0.15 % | -04 % | -26 % | 0.04 % | |
| CAD | 0.13 % | -06 % | -08 % | -0.15 % | -18 % | -0.42 % | -02 % | |
| Aud | 0.31 % | 0.11 % | 0.09 % | 0.04 % | 0.18 % | -18 % | 0.24 % | |
| Nzd | 0.52 % | 0.36 % | 0.34 % | 0.26 % | 0.42 % | 0.18 % | 0.40 % | |
| Chf | 0.14 % | -04 % | -06 % | -04 % | 0.02 % | -0.24 % | -0.40 % |
The heat map shows the percentage changes in the main currencies against each other. The basic currency is chosen from the left column, while the quotation currency is chosen from the top row. For example, if you choose the US dollar from the left column and move along the horizontal line to the Japanese yen, the percentage offered in the box will represent the USD (base)/JPY (quote).
