Japanese Jena is told higher against USD, dragging USD/JPY closer to 148.00 of the mark

Japanese yen throws a two -day loss from USD and recovers from a weekly low level.
Fears of Trump’s trading tariffs and Jastrzębie Boj’s expectations still act as a wind for JPA.
Bushing the FED rate reduction maintains USD close to a low level and contribute to reducing increases for USD/JPY.

Japanese Jen (JPy) increased higher in relation to its American counterpart during the Asian session on Thursday and is moving away from the weekly low touch of the previous day. The disordered implementation of the US President Donald Trump’s tariffs and their impact on the global economy may continue to escalate the demand for protected JPY. In addition, the growing plants that the Bank of Japan (BIJ) will continue to escalate interest rates due to the expansion of inflation in Japan, gives JPA support.

Meanwhile, the expectations of Hawkish Boy remain supporting the recent escalate in the profitability of Japanese government bonds (JGB). The resulting narrowing of the rate difference between Japan and other countries additionally acts as a wind with a lower brisk JPA. On the other hand, the American dollar (USD) hangs near the low level of expectations that the Federal Reserve (FED) will lower the rates several times this year. This, in turn, contributes to limiting the position for the USD/JPY pair.

Japan Jen attracts support from growing commercial tensions and BOOK foot increases plants

25% of the US President Donald Trump’s tariff on all imports of steel and aluminum came into force on Wednesday. Trump also threatened to respond to all remedies announced by the European Union and Canada.
Trump repeated his warning about the disclosure of “mutual” tariffs next month in countries around the world, fueling concerns about the further escalation of the trade war and support for the traditionally protected Japanese Jen.
Japanese companies have agreed to significant wage increases in a row to facilitate employees cope with inflation and deal with labor deficiencies. Higher wages are expected to escalate consumer expenses and contribute to growing inflation.
This potential gives the Bank of Japan more space for additional interest rate increases this year. This, in turn, maintains the profitability of the 10-year Japanese government bond similar to its highest level from the global financial crisis in 2008.
Meanwhile, the Governor of Bij Kazuo Ueda signaled that they did not have immediate plans for intervention on the bond market, and said that long -term feet are natural, which reflect market perspectives for politics rate.
Traders are increasing that the federal reserve will have to reduce interest rates this year by more than expected in connection with the growing possibility of economic slowdown due to the aggressive policy of Trump administration.
Expectations were confirmed by data published on Wednesday, which showed that the headline of the consumer price index in the USA (CPI) increased less than expected, by 2.8% per year in February, compared to 3% in the previous month.
Additional details of the report revealed that the basic CPI, which excludes unstable food and energy prices, softened the escalate of 3.3% in January to the rate by 3.1% y / rw of a given month. The reading was below the expected 3.2%.
Traders now expect to release the American manufacturer’s price index (PPI) for a fresh impulse later at the early North American session. The basic background, however, seems to be tilted in favor of USD/JPY bears.

USD/JPY may test low again in many months, when the sign 148.00 is broken definitely

From a technical point of view, no acceptance was found above the round film sign 149.00 and subsequent withdrawal confirms negative perspectives for the USD/JPy pair. In addition, the oscillators on the daily table stay deep in the territory of the bear and are still not in the sales zone. This, in turn, suggests that the path of the lowest resistance for Spot prices remains in the minus. Therefore, another sales below the 148.00 mark may reveal another appropriate support near the region 147.25-147.20, before the pair slides below the sign 147.00, in the direction of testing the low level, around 146.55-146.50 affected on Tuesday.

On the other hand, zone 148.60-148.70 now seems to act as an immediate obstacle before the result of 149.00 and a swing at night, around the region 149.20. Constant strength, apart from that, could lead to a tiny rally and allow USD/JPY pairs to recover the psychological sign 150.00. The momentum can stretch further towards the horizontal horizontal barrier 150.55-150.60 on the way to a round number of 151.00 and a monthly swing around the area 151.30.