- Japanese yen attracts fresher buyers on Thursday among growing commercial tensions.
- It assumes that the boy will continue to raise the rates, they borrow additional JPA support.
- The modest withdrawal from the multi -week top also exerted pressure on USD/JPy.
Japanese Jen (JPY) regains positive adhesion on Thursday as fresh tariffs of US President Donald Trump for imported cars and featherlight trucks from next week, increasing the demand for established secure resources. In addition, the moody hawks surrounding the prospects of the policy of the Bank of Japan (Bij), strengthened by a mighty raise in wages in the third year, turns out to be another factor at the base of JPA. In addition, the appearance of the sales of the US dollar (USD) drags a few USD/JPY closer to the psychological sign 150.00 during an Asian session.
Meanwhile, the Federal Reserve Forecast (FED) for two 25 base points rates in 2025 means a vast discrepancy compared to the expectations of Hawkish Boj. This may cause further narrowing of the difference in the difference in US-Japan rate and supporting perspectives for further closest recognition for lower performance with lower performance. Traders may, however, decide to wait for the Tokyo CPI price indicator and the US personal consumption price indicator (PCE) on Friday before placing fresh directional plants. In the meantime, Thursday American Makro data can provide an impulse for the USD/JPY pair.
Japanese Jen is based on growing commercial tensions and growing boot rates
- US President Donald Trump announced on Wednesday that he would impose 25% tariffs on all imported vehicles and foreign car parts on April 2, expanding the global trade war. This occurs on the upcoming mutual tariffs compared to at least 15 countries next week and burden the mood of investors, increasing the demand for Japanese Japanese Jenie.
- Investors seem to be convinced that the Japanese Bank will continue to raise interest rates among the expectations that a mighty wage raise will arise in consumption and filter wider inflation trends. Adding to this, a fresh member of the Board Board, Junko Keda, said on Wednesday that various indicators show that inflation underlying 2% inflation is balanced.
- Meanwhile, the Federal Reserve changed the prospects for growth in connection with the uncertainty about the impact of Trump’s commercial policy and signaled that by the end of this year it would provide two reductions of 25-point interest rates. This does not lend a hand the American dollar in using his last movement higher to the three -week achievement during the Asian session on Thursday.
- Chicago President Austan Goopolsbee said on Wednesday in an interview with the Financial Times (FT) that this could take longer than expected that the next reduction of the feet due to economic uncertainty. Goolsbee, however, believed that the loan costs would be slightly lower for 12-18 months, although wait and see that this is the right approach.
- Separately, President Minneapolis Fed Neel Kashkari repeated that “we have made a lot of progress in reducing inflation, there is still more to do.” Kashkari admitted that the labor market remained mighty and the uncertainty of politics complicates the work of the Fed.
- President of St. Louis Fed, Alberto Musale, said that the risk that inflation would stop above 2% or raise higher, seems to raise. If the labor market remains mighty and the tariff effects in the second round become observable, the US central bank may need to keep the rates for longer or to consider a more restrictive policy, I have added Musale.
- The US Trade Department announced on Wednesday that enduring goods orders increased in February by 0.9% compared to the changed raise from the previous month by 3.3%. In addition, basic strong goods that break the volatile transport sector increased by 0.7%. Readings were better than consensus estimates and provided a modest lift to the USD index.
- On Thursday, the American economic document includes the edition of the last printout of GDP in Q4, ordinary weekly data regarding claims for the first time and expecting home sales. However, he will focus on the personal consumption price indicator in the USA (PCE) on Friday, which can provide tips on the FED joint path and affect the dynamics of USD prices.
USD/JPY may attract DIP buyers; Key support 149.55 contains the key for bulls
From a technical point of view, the inability of the USD/JPY pair to utilize the recent breakthrough rush above 200-term-stem movable medium (SMA) on a 4-hour table and failures near the sign 151.00 on Tuesday justifies caution for bulls. After saying, the oscillators on the Daily chart just began to gain positive adhesion and supporting the prospects of the appearance of some buyers from DIP. Hence, all further weaknesses below 150.00 of the psychological sign could find support near the 149.55 area. However, some next sales may cause that spot prices susceptible to acceleration of falling in the direction of 149.00 on the way to support 148.75-148.70. The latter coincides with a 100-speed SMA on a 4-hour table, which, if it is broken, can change bias in favor of the bears of traders.
On the other hand, any positive transition beyond the 150.50-150.60 region can still face obstacles near the sign 151.00. Then there is a monthly swing, around the region 151.30, which, if it is cleaned, will establish a ground for the extension of recent recovery from a multi -commercial low level. Another move should allow a few USD/JPy to strive to recover a round number 152.00.