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In addition to the difference in monetary policy between the Federal Reserve and the Bank of Japan, the yen replaced the US dollar as the main safe, supportive currency USDJPY Bears. Let’s discuss this topic and develop a trading plan.
The article covers the following topics:
Main meals
- Reducing volatility prefers the Japanese yen.
- The Bank of Japan indicated the continuation of the normalization cycle.
- Tokyo will protect its companies and consumers from the American definitions.
- Short deals can be opened to the USDJPY pair that was formed at 150.7.
Weekly basic expectations for yen
The Japanese yen showed a strong performance as a safe origin, unlike the US dollar, which was characterized by instability. Investors feel confused about how one can prefer the US dollar while Donald Trump scares everyone with tariffs and creates chaos in financial markets. Against this background, USDJPY Decreased average, bears attempts to create a strong landing direction.
The decrease in the fluctuation of yen and the Swiss franc may disappoint their fans. In such an environment, commercial activity increases, the financing currency condition will be dealt with to strike USDJPY. However, this scenario depends on expanding the appetite of global risks, which is not the case at the present time. American protection policies are exacerbated by the deterioration of the index.
Japanese yen and French -Swiss volatility
Source: Bloomberg.
Decrease USDJPY He was expected to quote. This is especially noticeable in the light of the Goldman Sachs prediction of three cash expansion work by the Federal Reserve in 2025, unlike the cuts the market expects. Meanwhile, the Bank of Japan indicated a continuation of the tightening course.
The minutes of the BOJ March meeting suggested a possible pause in the normalization course. BOJ acknowledged that the American customs tariff can harm the Japanese economy. As a result, the central bank should make a special warning.
However, a comprehensive examination of the minutes reveals some positive developments. The Bank of Japan expressed its concerns about the negative impact of high prices on families and indicated that high wages will stimulate spending on the consumer. In fact, the prices of consumers in Tokyo accelerated to 2.4 % in March, bypassing all the expectations of the Bloomberg experts. Basic inflation also increased to 2.9 % of 2.8 %.
Change inflation in Japan
Source: Bloomberg.
Fears related to the future of the yen are fed through the 25 % definitions imposed by the United States on auto imports. These exports represent the share of a third of Japan’s exports to the United States. The industry employs 5.58 million people, or 8.3 % of the total workforce. In response, Prime Minister Shigro Ishiba pledged to take all necessary measures to support companies and workforce. He did not rule out the possibility of revenge, which could escalate into a commercial war.
Thus, even if both the Federal Reserve and the Bank of Japan maintain the current monetary policy courses, USDJPY Bears will benefit from the shift from the US dollar to the yen as a safe origin.
Weekly
The opening strategy Short situations on USDJPY The husband has proven if the husband fails to settle above the resistance level of 150.7. The landmark shows signs of recovery, and in such circumstances, one can maintain its short deals open and start more short centers from time to time.
This expectation depends on an analysis Basic factorsIncluding official data from financial institutions and organizers, various geopolitical and economic developments, and statistical data. Historical market data is also.
Usdjpy price scheme in actual time
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