Japanese yen sticks to a modest recovery compared to USD; the backward potential seems limited
- The Japanese yen attracts some of the Intra -Intra buyers on Friday, although it seems to be limited.
- Japanese mixed macro data increase BOJ additional hikes and JPY back.
- The pause of the Fed pike favors the USD bull and supports the USD/JPY in the middle of trade optimism.
The Japanese Yen (JPY) will remain in the forefront of his American colleague through the Asian session, and it seems that it has been affected by a two -week loss to four weeks on Friday. Japan's optimistic household spending data increases the case of further interest rates in the midst of expanding domestic inflation. This, with the rise in geopolitical tensions, drives some of the security beds towards JPY.
Meanwhile, US-UK adds an optimism that is led by US-China tariff negotiations over the weekend and alleviates the fears of the US recession, which in turn could act as a JPY stoppage. In addition, the Hawkish pause of the Federal Reserve (Fed) Hawkish on Wednesday should limit every meaningful US dollar (USD) corrective slide from almost one -month high highest slide and limit the negative side of the USD/JPY pair. Traders are now waiting for the fresh boost of edible speakers.
Japanese yen supports the revitalization of safe demand in the midst of geopolitical tensions
- The government's data released this Friday showed that the expenses of Japanese household increased by 0.4% and 2.1% in March compared to a year earlier, both exceeded market forecasts. In addition to this, expectations that remain in Japan in Japan refer to the expenses and inflation of consumers that the Japanese bank may not completely abandon its interest rates.
- In fact, on Thursday, 18-19. At the BOJ Monetary Policy Meeting of March, from the minutes, that the central bank is still ready to hike even more interest rates as inflation trends are valid. This, in turn, supports the BOJ's further tightening of further politics in 2025 and will help Japanese yen get positive traction at the Asian session on Friday.
- Japanese real wages decreased separately in March in the third consecutive month. In fact, salaries adapted to inflation fell by 2.1% a year earlier after a 1.5% decline in February and a 2.8% decline in January. In addition, the consumer inflation rate used to calculate real wages in March increased by 4.2% YOY, which was slightly 4.3% last month.
- The data is concerned about Japanese growth prospects in the midst of US tariff uncertainty and before the next week's first quarter report. This, in turn, can act in the middle of the JPY headwind, led by optimism at the beginning of the US-UK trade agreement and US-China tariff negotiations in Switzerland during the week.
- At the same time, positive developments help alleviate market problems that all trade wars can cause US recession. In addition, the signal of the Federal Reserve increases that despite increased economic uncertainty, it does not tend to reduce interest rates soon, the US dollar will raise to a four -week peak, which in turn should support the USD/JPY pair.
- There are no relevant economic data on the market to release from the United States on Friday. However, during the North American session, USD demands are later planned by influential FOMC members. In addition, a wider risk indicator should contribute to the production of short -term trading facilities on the last day of the week.
USD/JPY Constructive Technical Setup supports the prospects for watering payouts
From a technical perspective, a 4-hour chart could be considered a main trigger for bullish merchants through a 200-period simple moving average (SMA) chart through a 200-period mobile medium (SMA). Moreover, the daily chart oscillators have begun to get positive traction and keep the hourly cards in bullish territory. This supports the prospects for the formation of some DIP purchasers at a lower level, which should limit the negative side of point prices near the 145.00 psychological sign (200-period SMA in a 4-hour chart). However, a convincing pause may be lowered from the resistance to a lower technical sale and drag the currency pair to the next relevant support of 144.45 near the area.
In the meantime, Bulls can now expect a permanent move and acceptance of a round number before placing fresh bets. Purchase of some follow-up from the top of the Asian session, around 146.15-146.20, again confirms the positive positive positive outlook And paving the road for further recent evaluation of the USD/JPY pair. The following upward movement can be raised to 147.00 marks near the area between the points between the points between 146.75-146.80. The momentum can reach even further towards 147.70 horizontal obstacles before the pair is to conquer the 148.00 round number and climb even more than 148.25-148.30 towards the delivery zone.
Japanese yen FAQ
Japanese yen (JPY) is one of the worlds traded in the world. Its value is widely determined by the Japanese economy, but more specifically the difference between the Japanese Bank's policy, the yield of Japanese and US bonds or traders' quality.
One of the banks of Japanese mandates is currency control, so its moves are key to yen. Boj has sometimes intervened directly in the foreign exchange markets to lower the value of yen in general, although it often refrains from the political problems of its main trade partners. Boj's super-light monetary policy in 2013-2024 made the yen depreciated against its main currency companions, as the political difference between the Japanese Bank and other central banks. Recently, this ultra-light politics have gradually relaxed a certain support to the yen.
Over the last decade, BOJ has caused the Political Policy to enlist the expansion of the Ultra-free monetary policy with other central banks, especially the US Federal Reserve. It supported the expansion of the differential of the 10-year-old US and Japanese bonds, which favored the US dollars towards Japanese yen. BOJ's decision in 2024 will gradually abandon the highly accurate politics with cutting interest rates in other major central banks.
Japanese yen is often considered a safe investment. This means that during the stress of market, investors are more likely to put their money into the Japanese currency due to their alleged credibility and stability. Turbulent times are likely to strengthen the value of yen to other currencies invested.
