Japanese yen hangs for nearly two weeks for a slightly stronger USD

Jen Jen tries to lure buyers because commercial optimism undermines sheltered assets.
The modest USD boost gives additional support for USD/JPY, although the advantage seems to be constrained.
Divergent expectations of Fed Policy Boj can still act as a wind for a couple.

Japan Japan (JPY) remains close to almost two -week low affected against the American counterpart of the previous day, although any further decline seems elusive. The latest optimism in relation to the positive result of US-China’s commercial talks is seen as a key factor undermining the established status of sheltered JPA. Adding to this, a modest American dollar (USD) raises a pair of USD/JPA back above 145.00 during an Asian session on Wednesday.

However, the combination of factors should facilitate reduce deeper JPA losses. The Federal Court of Appeal ruled that US President Donald Trump’s tariffs may remain on the way, while legal appeals are continued. This increases the layer of uncertainty on the markets, which together with the plants that the Bank of Japan (Bij) will continue to raise interest rates should act as a wind for JPA. In addition, the expectations of the DOVISH federal reserve (FED) should limit Greenback and USD/JPy pairs.

Japanese bulls Jena remain on the defensive despite the hawks

Investors became cautious after the Federal Court of Appeal ruled that the tariff of the “Liberation Day” of the US President Donald Trump in the face of most trade partners may remain in force, while he checked the court decision to block them. The Tribunal has no governments yet whether the tariffs are permissible under the Act on emergency right, which Trump mentioned to justify them.
Data published last week showed that Japan’s economy shrunk less than initially estimated in the first quarter. Adding to this, signs of inflation widening in Japan pay attention to the further normalization of politics by the Bank of Japan. This still works as a wind for Japanese Jen, although optimism in relation to US-China’s commercial talks keeps bulls to defend.
The Minister of Chinese trade Li Chenggang told journalists that the negotiators of the Chinese and the USA agreed to trade after two days of talks in London. The Secretary of American Trade Howard Lutnick said that the framework was the first step to eliminate negativity, and the implementation plan should result in solving the problems of Rare Earth and Magnet.
Optimism resulting from a positive result of US-China’s key commercial talks remains a generally supporting positive tone on capital markets. Undermines the status of a sheltered JPA grip. In addition, signs of relieving tensions between the two largest hosts in the world facilitate the American dollar in attracting buyers and further action as a wind for the USD/JPY pair.
Traders agreed that the federal reserve would reduce interest rates within the next few months after the publication of the American non -Phermal (NFP) report on Friday, which indicated a resistant labor market. Traders, however, still value about 0.45% facilitating by the end of the year, which means a significant discrepancy compared to the expectations of Hawkish Boj.
Traders now expect the American consumer price index (CPI) to be released, which is expected to show a reception that can strengthen the Fed’s Wait-Andae attitude towards further alleviating. Nevertheless, key data will be examined in terms of tips on a path cut from the FED rate, which in turn will affect the price dynamics and provide a recent impulse.

USD/JPY seems to be ready to climb further, and over 200-speed SMA on H4

From a technical point of view, acceptance above the 100-speed plain movable medium (SMA) and positive oscillators on charts per day/hourly favors USD/JPY bulls. However, the repetitive failures of shooting of the shoot outside the psychological sign 145.00 make it wise to wait for the following purchases outside the area of 145.30 or a two -week top touched on Tuesday before positioning for further profits. Spot prices can then exceed an indirect obstacle of 145.60-145.65 and strive to recover the round number of 146.00 before entering further towards the region 146.25-146.30 or May 29.

On the other hand, the 200-speed SMA on a 4-hour table, currently established near the 144.30 area, can now protect direct defects against the result of 144.00. The convincing break below the latter negates positive perspectives and will change brief -term prejudice in favor of USD/JPY bear. A later decline may reduce point prices to the region 143.60-143.50 on the way to levels below 143.00.

Frequently inflicted by American-chin

In general, the trade war is an economic conflict between two or more countries due to extreme protectionism at one end. This means creating trade barriers such as tariffs that cause a counterattack, escalating import costs, and thus maintenance costs.

The economic conflict between the United States (USA) and China began at the beginning of 2018, when President Donald Trump established trade barriers for China, claiming that unfair commercial practices and theft of intellectual property from the Asian giant. China took retaliation, imposing tariffs on many American goods, such as cars and soy. The tension escalated until both countries signed trade agreements in the American-Chinese phase in January 2020. The agreement required structural reforms and other changes in the Chinese economic and commercial system and pretended to restore stability and trust between two nations. However, Coronevirus’s pandemic focused on the conflict. It is worth mentioning, however, that President Joe Biden, who took office after Trump, kept the tariffs and even added additional fees.

The return of Donald Trump to the White House as 47. The US president caused a fresh wave of tension between two countries. During the election campaign in 2024, Trump undertook to impose a 60% tariff on China after returning to the office, which he did on January 20, 2025. With the return of Trump, the trade war in the USA-China is aimed at resuming where it remained, with the principles of Tatat, influencing the global economic landscape among the global resources, which will reduce, which will reduce, which will reduce, which will reduce, which will reduce, which will reduce, which Especially investments, as well as directly nutrition in indexing consumers.