The Japanese yen remains on the front foot. The dollar is struggling less than mid -144.00s
- The Japanese yen attracts new buyers on Monday and settles on a two -day losing line.
- An upward review of the Q1 GDP in Japan confirms the confirmation of BOJ prices and enhance JPY.
- The appearance of some sale in US dollars is extra pressure on USD/JPY.
The Japanese yen (JPY) remains on the front foot during the Asian session on Monday, amid the increasing acceptance that the Bank of Japan will continue to raise interest rates. Bets were reaffirmed by an upward review of the Q1 GDP printing in Japan. In addition, Downtick with the modest US dollar (USD) is withdrawn the US dollar’s pair/JPY away from its highest levels of the week on Friday.
However, JPY Bulls appears to be hesitant to put aggressive bets and may choose to wait on the margin before the US -Chinese commercial conversations in London later today. Moreover, the strongest American job data on Friday than expected, led to imminent discounts in imminent prices by the Federal Reserve this year, which is seen as a back action of the US dollar and losses that limit the US dollar pair/JPY.
The Japanese yen maintains a positive bias amid the high stakes to raise the BOJ rate
- The Japanese Cabinet Office said earlier this Monday that the economy had not registered any growth during the first quarter of 2025, compared to a decrease of 0.2 % at first. Refuting data also revealed that the Japanese economy contracted at a slower pace, by 0.2 % annually during the amount of the amount, compared to the tradition of 0.7 % reported at the beginning.
- Additional details showed that special consumption, which represents more than half of the Japanese economy, rose 0.1 % during the January to March period compared to a flat initial reading. This gives the Bank of Japan Headroom to raise interest rates more this year and provides a modest elevator to the Japanese yen at the beginning of a new week.
- Japanese Prime Minister Shigro Ishiba said that Japan should realize that the high interest rates will increase the cost of debt financing for the government and affect the spending plans. Ishiba added that the government should ensure that the public market confidence in financial affairs in Japan.
- The US dollar, on the other hand, is struggling to take advantage of Friday’s move higher, under the leadership of the unexpected US salary salary report (NFP). The decisive US employment data showed that the economy added 139 kilos of new jobs in May, less than the revised print in the previous month of 147,000, although it was better than 130,000 expected.
- Other details of the report showed that the unemployment rate is 4.2 %, as expected. In addition, the average profits per hour remained 3.9 %, exceeding 3.7 % consensus estimates. These expectations have strengthened that the federal reserve will carry fixed interest rates at its next meeting and strengthen the US dollar.
- On Monday, senior US and Chinese officials will meet negotiations aimed at defusing the trade conflict of high risks among the world’s largest economists. US President Donald Trump said last week that a invitation with Chinese leader Xi Jinping was almost completely focused on trade and led to a very positive conclusion.
- On the geopolitical front, Russian forces launched huge attacks on the second largest city of Kharkiv in Ukraine with drones, missiles and bombs accompanied by guides. Moreover, Russia has claimed that the tank department had reached the western border of Donetsk and continues to advance, indicating a dangerous escalation in the conflict amid the stalled peace talks.
The USD/JPY bears look hesitant. The outbreak of the short -term trading in playing
From a technical perspective, the outbreak of Friday was seen through a multi -day trading scope as a major operator of the US dollar bulls/JPY. However, the neutral vibrations on the daily chart make it wise to wait for some follow -up purchase beyond the psychological brand of 145.00, or in one week that was touched last Friday, before locating to make more gains. The instant prices may climb to the horizontal barrier 145.55-145.60 on its way to the round shape 146.00 and May 29, about 146.25-146.30.
On the other hand, the trading range stop point appears to be around the round shape 144.00, now protects the direct negative side. However, a convincing break below may pay some technical sale and withdraw USD/JPY Recovery towards the area 143.50-143.40 on its way to the 143.00 mark and the next appropriate support near the horizontal area 142.70-142.65. The latter should be a pivotal point, which, if broken decisively, will act as a skill to resume the last fall from the height of the monthly swing.
Japanese questions yen
The Japanese yen (JPY) is one of the most trading currencies in the world. Its value is widely determined by the performance of the Japanese economy, but more specifically through the policy of the Bank of Japan, and the differential between the revenues of Japanese and American bonds, or risk morale among merchants, among other factors.
One of the states of the Bank of Japan is the control of the currency, so its movements are the key to the yen. BOJ interfered directly in the currency markets sometimes, and generally to reduce the value of the yen, although it refrains from doing so often due to the political concerns of its main commercial partners. Boj Ultra-LOOSE’s monetary policy between 2013 and 2024 caused the yen to decrease against its main peers due to the difference in policy between the Bank of Japan and other major central banks. Recently, relaxation has gradually gave this super -support policy some support for the yen.
Over the past decade, the BoJ’s position of adhering to a high -minded monetary policy has has expanded a difference in politics with other central banks, especially with the American Federal Reserve. This is to support the expansion of the difference between American and Japanese bonds for a period of 10 years, which preferred the US dollar against the Japanese yen. BOJ’s decision in 2024 to gradually abandon the policy of the super taste, as well as discounts in the interest rate in other major central banks, narrows this difference.
The Japanese yen is often seen as a safe investment. This means that in times of stress on the market, investors are likely to put their money in the Japanese currency because of its reliability and supposed stability. Distinguished times are likely to enhance the value of the yen against other currencies that are seen as more dangerous for investment.
