empty
06.05.2025 06:47 PM
USD/JPY. Analysis and Forecast

This image is no longer relevant

The Japanese yen is attracting buyers following a recent decline, owing to its status as a safe-haven asset in times of uncertainty. The anticipated recovery of the yen is supported by both domestic and external factors.

Despite dovish signals from the Bank of Japan last Thursday, rising inflation in Japan and the outlook for sustained wage growth are laying the groundwork for potential monetary tightening by the central bank.

In addition, uncertainty surrounding U.S. President Donald Trump's trade policy and escalating geopolitical tensions are boosting demand for safe-haven assets such as the Japanese yen. This continues to support demand for the Far Eastern currency.

On the other side of the pair, the U.S. dollar is struggling to attract significant buying interest, as traders await further signals regarding the Federal Reserve's interest rate reduction path. As such, market participants should closely monitor the two-day FOMC meeting that begins today and concludes tomorrow during the North American session. This meeting of the Federal Open Market Committee (FOMC) is a key event that could have a substantial impact on the market.

From a technical standpoint, the USD/JPY pair struggled last week to break above the 200-period Simple Moving Average (SMA) on the 4-hour chart. The subsequent decline and negative oscillator readings on the daily, 4-hour, and 1-hour charts suggest that the path of least resistance for spot prices is to the downside. Therefore, any recovery attempts above the 144.00 round level can be viewed as a selling opportunity near the supply zone of 144.25–144.30. However, sustained strength beyond this zone could trigger a short-covering rally, allowing spot prices to return to the psychological level of 145.00.

On the other hand, weakness below the 143.00 round level would drag the pair toward support at 142.50. A decisive break of this level would expose the 142.00 round number. If the pair fails to hold this level, the next stop would likely be in the 141.60 level, with the potential to drop further toward the next psychological level at 141.00.

This image is no longer relevant

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

RBA Turns Increasingly Dovish, Reducing Chances of AUD/USD Recovery

The RBA cut the interest rate by 25 basis points to 3.85% on Wednesday, in line with market expectations. At the concluding press conference, the RBA Governor acknowledged that

Kuvat Raharjo 12:26 2025-05-22 UTC+2

XAU/USD. Analysis and Forecast

Gold is retreating after reaching its highest level in nearly two weeks. This pullback lacks clear fundamental triggers and is likely to remain limited due to several supportive factors. Expectations

Irina Yanina 12:21 2025-05-22 UTC+2

NZD/USD. Analysis and Forecast

The NZD/USD pair is pulling back after reaching a weekly high around the 0.5965–0.5970 level and is currently trading near 0.5920, marking a new daily low. The release

Irina Yanina 12:18 2025-05-22 UTC+2

USD/CAD. Analysis and Forecast

The USD/CAD pair is encountering difficulties in its attempt to recover following an overnight rebound from the 1.3815–1.3810 level, indicating a continuation of the week-long downtrend. Oil prices are rebounding

Irina Yanina 12:12 2025-05-22 UTC+2

GBP/USD. Inflation, Road Tax, and the Outlook for a Northern Trend

The GBP/USD pair hit a new three-year high yesterday, reacting to a sharp spike in UK inflation. However, the significance of the inflation report should not be overstated

Irina Manzenko 11:58 2025-05-22 UTC+2

The Market Is Losing Buyers

If you harm your relationship with your neighbors, don't expect them to offer you help. Donald Trump's tariffs and subsequent coercive negotiations have diminished the willingness of other countries

Marek Petkovich 09:49 2025-05-22 UTC+2

Changes in the U.S. Tax System May Exert Localized Pressure on Market Demand (there is a likelihood of a decline in #SPX and gold prices)

The chaos and instability caused by Donald Trump, both in the U.S. and around the world, have become a regular occurrence. However, they still contribute to significant market volatility

Pati Gani 09:49 2025-05-22 UTC+2

EUR/USD Overview – May 22: A New Blow to the Dollar: "One Big Beautiful Bill Act"

The EUR/USD currency pair continued its upward movement on Wednesday. The U.S. dollar has been falling steadily for over a week—something that hasn't happened in over a month. However, every

Paolo Greco 08:10 2025-05-22 UTC+2

GBP/USD Overview – May 22: The Market Once Again Responds Clearly to Trump

The GBP/USD currency pair continued to move north on Wednesday, even though, at first glance, there appeared to be no apparent reason for it. Yes, the inflation report—the only release

Paolo Greco 08:09 2025-05-22 UTC+2

What to Pay Attention to on May 22? A Breakdown of Fundamental Events for Beginners

There are several important macroeconomic reports scheduled for release on Thursday. Business activity indexes for May's services and manufacturing sectors will be released in Germany, the Eurozone, the United Kingdom

Paolo Greco 06:31 2025-05-22 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.