Forex Analysis & Reviews: 14.05.2025 - USD/JPY. Analysis and...

Live Chat

InstaForex Loprais Team - Official participant of the Dakar rally

This section features the most important information about trading with InstaForex. We provide both analysis from leading experts for experienced traders and articles on trading conditions for beginners. Our services will help increase your profit potential.

Become Trader

Account Opening

See also

Trading Conditions

Forex Analytics

Charts

This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.

Start as Beginner

How to start trading

Useful information

Training and recordings

InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.

Become Investor

PAMM System

ForexCopy System

Passive investments

OYS account

Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.

Become Partner

Main Page

Partner Area

Advantages for Affiliates

Registration

This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.

All Promo Campaigns

Bonuses

Contests

Events

Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.

Full details

Forums

We are in social networks

Forex humour

Forex Portal

InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.

Learn More

History

Why Choose Us

InstaSport

Regulation

Company News

Awards

InstaForex Stars

InstaForex Offline

Headquarters

Key documents

Social Responsibility

InstaForex - Official partner of Dragon Racing

14.05.2025 11:28 AM

USD/JPY. Analysis and Forecast

At the moment, the Japanese yen is showing positive momentum against the U.S. dollar for the second consecutive day.The key factor supporting the Japanese currency has been hawkish comments from Bank of Japan Deputy Governor Shinichi Uchida, who left the door open for further monetary policy normalization through interest rate hikes. Uchida stated that if the economy and prices evolve as expected, the central bank would continue raising rates. He also added that Japan's economic growth is expected to slow to around its potential before gradually resuming moderate expansion as other global economies recover. This boosts expectations for increased appeal of the yen, contributing to its strengthening.

Currently, traders have revised their expectations of aggressive Fed easing, reducing the likelihood of sharp future rate cuts. Nonetheless, investors are still pricing in roughly 56 basis points of Fed rate cuts by the end of the year. These expectations have been reinforced by weak U.S. consumer inflation data released on Tuesday.

According to the U.S. Bureau of Labor Statistics (BLS), the annual headline Consumer Price Index (CPI) dropped to 2.3% in April from 2.4% in March. The core CPI, which excludes volatile food and energy components, matched analysts' forecasts. These figures are keeping the U.S. dollar below the recent peak seen on April 11 and are exerting some pressure on the USD/JPY pair.

Despite this, optimism surrounding the trade truce between the U.S. and China continues to support positive sentiment across broader markets. Reports that both countries agreed to pause the trade war for 90 days and reduce mutual tariffs—along with President Donald Trump's statement about good relations with China—are not creating the kind of fear that would trigger a flight to safe-haven assets like the yen. Still, diverging monetary policy expectations between the Bank of Japan and the Federal Reserve are creating conditions for further short-term yen strength.

Overall, the current environment suggests the potential for a decline in USD/JPY driven by soft inflation data and positive trade developments. However, uncertainty remains regarding the Fed's next moves and the geopolitical landscape. Therefore, it's wise to closely monitor speeches from influential FOMC members, which could sway the dollar and provide direction for the currency pair.

Technical Outlook

Positive oscillators on the daily chart favor the bulls. As such, a correction below the psychological 147.00 level could be viewed as a buying opportunity near the 146.60–146.50 zone. However, a decisive break below this range would likely trigger technical selling, dragging USD/JPY toward the next round number at 146.00 and potentially toward the 145.50 zone, just ahead of the key psychological level at 145.00. A breach of 145.00 would shift momentum in favor of the bears.

On the other hand, the 147.65 level serves as resistance ahead of the 148.00 round level. Surpassing this barrier would open the path to the monthly high near 148.65. Additional buying beyond that high could act as a fresh trigger for bulls.

You have already liked this post today

*Disclaimer: The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

If you have any content questions, please contact editorial-board@instaforex.com

Fundamental analysis

Recommended Stories

Top analytics

Recommended Stories

Top analytics

Dear visitor,