empty
25.03.2025 07:09 PM
USD/JPY. Analysis and Forecast

This image is no longer relevant

The USD/JPY pair is retreating from the psychological level of 151.00, reached earlier on Tuesday, though this pullback is not accompanied by significant selling pressure. The Japanese yen is attracting buyers amid hawkish comments from the Bank of Japan, despite disappointing PMI data from Japan.

According to the minutes of the Bank of Japan's January meeting, the need for further monetary tightening remains if positive economic prospects continue. BoJ Governor Kazuo Ueda emphasized that the goal is to achieve stable prices and that the bank is ready to adjust its policy if inflation reaches the 2% target. This fuels expectations that rising wages will impact inflation, supporting the case for higher interest rates.

However, hopes for less damaging U.S. trade tariffs, a peace agreement between Russia and Ukraine, and stimulus measures in China are holding traders back from aggressively betting on a stronger yen. Meanwhile, the U.S. dollar maintains its strength, supported by positive PMI data from the U.S., which also helps keep the USD/JPY pair elevated.

This image is no longer relevant

From a technical perspective, the breakout above the 150.00 level — coinciding with the 200-period Simple Moving Average (SMA) on the 4-hour chart — is seen as an important bullish signal.

This image is no longer relevant

A positive Relative Strength Index (RSI) on the daily chart supports the outlook for further gains. Pullbacks are likely to be viewed as buying opportunities, remaining limited by the psychological support at 150.00. However, a break below this level could open the path to support zones at 149.30–149.25 and lower. Failure to defend the 148.60 level would shift the short-term bias in favor of the bears.

If bullish traders can hold above 151.00, this may lead to a test of the monthly high around 151.30, followed by a move toward the 200-day SMA near 151.75, and then to the psychological level of 152.00. The rally could extend to intermediate resistance at 152.30 en route to the round level of 153.00.

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

USD/JPY. Analysis and Forecast

The bulls of the Japanese yen have not been significantly affected by the disappointing GDP report for Japan's first quarter. This is largely due to growing expectations that the Bank

Irina Yanina 18:38 2025-05-16 UTC+2

XAU/USD. Analysis and Forecast

Gold is experiencing renewed intraday pressure, falling below the key psychological level of $3200 during the first half of the European session on Friday. Optimism surrounding the trade truce between

Irina Yanina 18:37 2025-05-16 UTC+2

Market gets lost in crowd

Investors are so confident that Donald Trump is following the stock market's lead that the S&P 500 no longer needs a reason to rise. The broad equity index had been

Marek Petkovich 11:40 2025-05-16 UTC+2

Japan on the Brink of Recession

The GDP report published on Thursday revealed that Japan's economy contracted by 0.7% year-over-year in the first quarter—its first annual decline in the past year and significantly worse than expected

Kuvat Raharjo 11:00 2025-05-16 UTC+2

Investors Continue Digesting the Impact of the Tariff Truce Between the U.S. and China (There Is a Chance of Renewed Corrective Decline in Gold and Oil Prices)

Markets have fully priced in the outcome of the U.S.–China talks, which resulted in a 90-day trade truce. Weaker-than-expected U.S. economic data offset the early-week optimism. The recent rally lost

Pati Gani 10:49 2025-05-16 UTC+2

What to Pay Attention to on May 16? A Breakdown of Fundamental Events for Beginners

Few macroeconomic events are scheduled for Friday, and they are not more significant than the reports released on Thursday, which did not provoke any market reaction. In essence, the only

Paolo Greco 06:17 2025-05-16 UTC+2

GBP/USD Overview – May 16: The Market Has No Desire to Sell

The GBP/USD currency pair traded sideways on Thursday with low volatility—typical behavior for the pound over the past month. First, there was a classic flat range; now, we see "swings"

Paolo Greco 03:54 2025-05-16 UTC+2

EUR/USD Overview – May 16: The Dollar Remains the World's "Number One Currency"

The EUR/USD currency pair moved in both directions on Thursday but ultimately remained below the moving average line. Its position beneath the moving average allows us to expect further strengthening

Paolo Greco 03:54 2025-05-16 UTC+2

Are Things Really So Optimistic with the Deals with China and the UK?

Last week, Donald Trump announced the signing of the first deal with the United Kingdom under his "America's Liberation" campaign. It was later revealed that the deal had not been

Chin Zhao 00:40 2025-05-16 UTC+2

The Euro Didn't End Up in the Junkyard

Chinese goods have flooded the European market, but EUR/USD bulls aren't alarmed by this. While the U.S. has reduced tariffs on imports from China, the weighted average tariff still sits

Marek Petkovich 00:39 2025-05-16 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.