- The USD/JPY traded with powerful acquisitions near 146.00 while the Yen weakened greatly following the BOJ policy guide.
- US claims that unemployment has moved to 241,000 while the ISM Manufacturing PMI slipped to 48.7, strengthening expectations for Fed rate cuts next year.
- The technical perspective remains bullish short-term, with a pair test resistance near 146.64 and support seen around 145.04.
The USD/JPY is trading with a prominent strength, falling to the upper end of its recent range as Japanese Yen continues to make no mistake following the latest Bank of Japan meeting. The pair reached 1.76% in the day and approached 146.00 areas, driven by a modified difference between US financial policy policy and fresh signs of the labor market softness in the US.
The BOJ has kept interest rates unchanged at 0.50% and lowered GDP and inflation forecasts for current and next fiscal years, citing elevated external risks and uncertainty at home. Boj Governor Kazuo Ueda struck a careful tone at his press conference, featured that the momentum of inflation could be stopped and the perspective was lacking the confidence needed for further increases in rate. The central bank now expects GDP growth of just 0.5% for FY2025, down from 1.1%, and also lowered its inflation forecast. The markets have translated this stance as Dovish, which drives back expectations for the next walk until late 2025 in the first.
Meanwhile, the US dollar will be held firm against most peers after the mixed data. The ISM Manufacturing PMI fell slightly at 48.7 in April, from 49.0, but even better than the expectations of 48. In addition, the initial claim of unemployment rose to 241,000, more than both last week's printing and market expectations, which signed a softening market. These figures are added to the view that the Fed may need to respond to rate cuts to support the growth.
Political and trade uncertainty has also added a layer of career to market sentiment. Former Treasury secretary Janet Yellen has warned about the bad economic impact of Trump's new tariffs, as reports suggest that the US may aspire to engage in China and Japan again in trade terms. The USD remains widely supported for now, which has been assisted by increasing US treasury yields and strong tech revenue that boosts equity feelings.
Technical analysis
From a technical point of view, the USD/JPY flashes a bullish signal, which is currently trading around 146.00 and near the top of its day -to -day range of 142.87 to 145.65. The MACD provides a clear purchase signal, which aligns with bullish support from the 10-day EMA at 143.35 and the 10-day SMA at 142.71. The RSI sits at 52.88, indicating the room for further upside down, while ADX at 34.02 strengthens the bullish trend. The coverage of the Williams Percent at -1.46 is neutral, and the 20 -day SMA at 143.70 continues to support the uprising. However, the 100-day and 200-day SMA at 151.01 and 149.83 respectively suggest longer resistance remains significant.
The main support levels can be found at 145.55, 145.04, and 144.65. Upside down, the resistance lies at 145.67, 146.64, and 146.95. A sustainable break above 146.64 can open the door to the test at 148.00 in the upcoming sessions, especially if the unusual payrolls of Friday confirm further weakness in the labor market and the fed cut bets intensify. Until then, the short -term bias remains skewed upside down.
Sunny chart
