- The Japanese yen is drifting down on the second straight day during the optimism of US trade transactions.
- Contributes that Boj will hike in 2025 and that economic uncertainty may limit JPY damage.
- Fed's hawkish pause pushes USD and USD/JPY higher than Trump's press.
Japanese Yen (JPY) will turn to a lower US dollar (USD) during the second straight day, raising the USD/JPY pair closer to the mid-144.00s at the beginning of the European session on Thursday. Against the backdrop of US-China's trade negotiation optimism, US President Donald Trump's comments on a major trade transaction announcement later increase the confidence of investors. This, in turn, can be seen in demand for traditional safe assets, including JPY. On the other hand, the USD will fascinate the Federal Reserve (Fed) Hawkish on the back of a break on Wednesday.
At the same time, the minutes of the Japanese Bank (BOJ) meeting pointed out that the central bank is still ready to make more efforts with economic and price views. This, along with an increased economic uncertainty caused by Trump's rapidly changing attitude towards trade policy, should act as JPY as a backwind. Moreover, the geopolitical risks resulting from the long-term Russian-Ukrainian war, the Middle East conflicts and the dangerous military confrontation between the Indian-Pakistan border may be restricted by JPY damage. Traders may also refrain from placing aggressive USD bullish stakes and decide to wait for Trump's press conference at 14:00 GMT.
Japanese yen attracts fresh sellers after Trump's comments in the midst of safe Haven demand
- After a minute, the monetary policy meeting of the Japanese Bank (BOJ), which took place on the 18th-19th centuries. On March, it turned out that the central bank is still ready for hiking than inflation trends. However, the policy makers emphasized caution due to the increased economic uncertainty due to the US tariff policy.
- In the meantime, Boji Governor Kazuo Ueda said that he had the impact of growing food prices on the basis of inflation. In addition, expectations that remain in Japan in Japan refer to the expenditure and inflation of consumers, that Boj may not completely abandon his tariff plans and further effort in 2025.
- US President Donald Trump hoped to quickly resolve the US -China Trade War, saying that he was not open to China to lower the 145% tariffs. Trump added that he had no speed to sign any transactions, although he said he later announces today with a large, highly respected country.
- On Wednesday, Russia and Ukraine participated on the geopolitical front before Russian President Vladimir Putin's unilateral three -day ceasefire, which came into effect this Thursday earlier. In addition, the Israeli army said it was a completely disabled Yemen's main airport in Sana, which is controlled by the Houths.
- The US Dollar Bulls fights the higher favor of the previous day, despite the Federal Reserve's signal that it does not tend to cut the cuts as soon as possible. In fact, Fed manager Jerome Powell said that there is a lot of uncertainty about US trade tariffs, and that it is now right to make further clarity.
- Traders are now waiting for the initial Unemployed Requirements for the United States, which are later intended during the northern American session. However, the focus is on the Trump press conference at the 14 GMT Oval Office, which plays a key role in influencing the wider risk device and influencing the demand for a safe Haven JPY.
USD/JPY Bulls take the daily inspection; Breakout over 144,25-144.30 hurdles run
From a technical point of view, the daily malfunction favors the 144.00 mark near the USD/JPY pair still in the middle of the still negative oscillators on the daily chart and in the light of last week's rejection near a 4-hour chart of 200-period simple moving average (SMA). Some follow-ups selling below 143.40-143.35 immediate support confirms the negative re-confirm outlook And drag points below 143.00, back to 142.35 in the area or the lowest week. This is followed by a round indicator of 142.00, which may change the weakening of the currency pair in the event of a breakage.
On the valve side, the 144.00 sign may continue to act as an immediate obstacle before 144.25-144.30 delivery zone. The continuous strength that exceeds the latter can trigger a short cover rally and allow the USD/JPY to return the psychological sign 145.00. The momentum can reach an even more 4-hour chart towards the 200-period SMA, which is currently linked to the 145.25 area, which is on the road high last week, around 146.00 around the neighborhood.
Rag
In the world of financial plates, two widespread concepts of “risk” and “risks” refer to the risk level that investors are willing to be on the stomach during the period referred to. In the “risk” market, investors are optimistic about the future and want to buy risky assets. “Out -of -risk” in market investors is that they are still confident if they are in the future when they are tied up when they are tied to that they are “. Modest.
Usually, stock markets increase during risk periods, including most of the gold value, including the raw materials, as they benefit from a positive growth prospect. The currencies of heavy goods exporters are strengthened due to increased demand and cryptocurrency. In the out-of-risk market, the bonds are raised-large government bonds-golden golden currencies, such as Japanese yen, Swiss frank and US dollar.
Australian Dollar (AUD), Canadian Dollar (CAD), New Zealand Dollar (NZD) and Minor FX Like Rubles (RUB) and South African Beach (ZAR), everyone tends to rise in the markets “risk”. This is due to the fact that the economies of these currencies are largely dependent on commodity exports for growth and goods tend to increase the price during the risk periods. This is due to the fact that investors will see more demand for raw materials due to increased economic activity in the future.
The main currencies that tend to rise during the risk periods are the US dollar (USD), Japanese yen (JPY) and Switzerland Franc (CHF). The US dollar because it is the world reserve currency, and because during the crisis, investors buy us a public debt that is considered safe because the world's largest economy is unlikely to pay. Yen, due to the increased demand for the Japanese government bonds, as there are major partly domestic investors who are unlikely to throw them – even in crisis. Swiss Frank, as strict Swiss banking laws provide investors with increased capital protection.
