empty
14.03.2025 02:33 PM
USD/JPY: Analysis and Forecast

This image is no longer relevant

The Japanese yen is losing ground today. Positive news on U.S.-Canada trade negotiations and reports that Democrats have secured enough votes to prevent a U.S. government shutdown are improving global risk sentiment. Additionally, according to Bloomberg, citing a source familiar with the Bank of Japan's position, uncertainty over potential rate hikes by the BOJ is also weighing on the yen.

Investors still expect the Bank of Japan to raise interest rates, given rising inflationary pressures in Japan and hopes for continued wage growth, which was observed last year. This is the main factor narrowing the interest rate differential between Japan and other countries, helping limit the yen's losses. At the same time, Trump's tariffs are raising concerns about a slowdown in the U.S. economy, which could prompt the Federal Reserve to cut rates in 2025, complicating further U.S. dollar recovery and, consequently, USD/JPY's upward potential.

From a technical perspective, upward movement has already encountered resistance at the psychological level of 149.00, with the next key resistance at 149.20, the weekly high. A sustained breakout beyond this level could trigger a short-covering rally toward the 150.00 mark. Momentum could extend further, pushing the pair toward 150.55, and potentially 151.00, with the monthly high at 151.30 as the ultimate target.

On the other hand, support is now at 147.70. A decisive break below this level could accelerate declines toward 147.00, extending losses to the 146.55-146.50 zone. Given that oscillators on the daily chart remain in negative territory, further selling pressure could trigger bearish momentum, leading to additional losses for USD/JPY.

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

The Fed Is Not Ready to Act Before the Second Half of the Year

In recent reviews, I have repeatedly addressed the topic of the Federal Reserve's monetary policy, market expectations, and the reality we all live in. I believe the market's expectations

Chin Zhao 00:23 2025-05-23 UTC+2

Canadian Inflation Resumed Growth. USD/CAD Overview

Core inflation in April unexpectedly rose higher than forecast, rising from 2.2% to 2.5% year-over-year. Headline inflation slowed from 2.3% to 1.7%, slightly above the forecast. The decline in headline

Kuvat Raharjo 00:23 2025-05-23 UTC+2

The Dollar Keeps Moving Forward

The approval by the House of Representatives of what Donald Trump called a "big and beautiful" tax-cut bill, along with a rise in the U.S. composite PMI from 50.6

Marek Petkovich 18:16 2025-05-22 UTC+2

EUR/USD. Weak Euro, Weak Dollar

The three-day bullish rally in EUR/USD has come to an end: today the pair retreated into the 1.12 zone. However, the dollar is in no position to guarantee a sustained

Irina Manzenko 18:09 2025-05-22 UTC+2

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
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.