* The Japanese yen remained steady after the Bank of Japan (BOJ) held interest rates unchanged at 0.50%, signaling a wait-and-see approach amid concerns over the potential impact of US tariffs announced by President Donald Trump. The BOJ maintained an optimistic outlook, forecasting a moderate economic recovery driven by domestic factors, which provided support for the yen.
* The US Dollar weakened against the yen following the FOMC meeting, where the Federal Reserve reaffirmed its dovish stance by keeping interest rates at 4.25%–4.5%. The Fed maintained its projection for two rate cuts in 2025, despite persistent tariff-driven inflation concerns
*Technical Breakdown: USD/JPY has experienced a double breakout, falling below both the uptrend line and a key support level. If bearish momentum persists, the pair could decline toward the 147.70 support level. However, the MACD is showing signs of weakening bearish momentum, while the RSI at 29 suggests the pair is oversold, increasing the likelihood of a short-term technical correction. If the downtrend stalls, USD/JPY could retest the 148.45 resistance level.
Understand how technical analysis can help you in this trading opportunity.
Escalating trade war tensions and global economic uncertainties may introduce further volatility in the currency markets, influencing the Yen’s strength against the US Dollar.
Know how to manage trading risks with risk management strategies.
Watch for developments in for any shifts in the potential trade tariffs from Trump, by following PU Prime’s market insights and daily financial news.
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