- Japanese yen attracts some intraday sellers, although the negative side seems limited.
- Increasing geopolitical stress and business uncertainties should benefit safe-heaven JPY.
- Divisional Boj-Fed Policy Expectations may contribute to capping USD/JPY.
Japanese Yen (JPY) retreats at least a week at least a week against the rebounding US dollar during the Asian season on Friday. However, any meaningful JPY depreciation seems elusive in view of growing geopolitical stresses in the Middle East, which can continue to act as a telvind for traditional safe-huisage assets, with frequent trade-related uncertainties.
In addition, the increasing acceptance is that the Bank of Japan (BOJ) will stick to the route towards generalization of monetary policy, supports the case for the emergence of some JPY dip-boires. Meanwhile, further signs of cooling inflation in the US confirmed bets to cut a adjacent rate by the Federal Reserve (Fed) this year. It can cap on USD recovery and benefit the low yield jPY.
Japanese Yen Bulls is the upper hand amid global flight for security
- Israel started a pre-Khali attack against Iran. The Israeli Air Force carried out dozens of attacks in Iran, targeting the military headquarters along with atoms and missile sites. After the attack, Israeli Defense Minister Israel Katj announced a special state emergency in the country and warned that a missile and drone attack on Israel and its civilian population would be held soon.
- US State Secretary Marco Rubio said in a statement that Israel took unilateral action and the US was not involved in attacks against Iran. Meanwhile, Iran’s Defense Minister Aziz Nasirzadeh threatened to attack American bases in the region if the conflict climbs on its nuclear program. This increases the risk of a broad regional conflict and promotes safe-heaven Japanese yen.
- On the business related front, US President Donald Trump said on Wednesday that he would set a one -sided tariff rates and inform business partners within two weeks. In addition, Trump’s extended steel tariffs, currently at 50%, are applied to a series of home appliances, including dishwashers, washing machines, refrigerators, and more, which add a layer of uncertainty in markets.
- A Reuters pole indicated earlier this week that a minor majority of economists hope that Bank of Japan will increase another interest rate this year. However, investors are sure that boj may proceed to tight monetary conditions and proceed as inflation in Japan has crossed the 2% target of the central bank for more than three consecutive years.
- In contrast, traders bet that the Federal Reserve would resume their rate-cutting cycle in September following data released on Thursday, indicating signs of cooling inflation and potential weakening in the labor market. The US Bureau of Labor Statistics reported that the manufacturer price index remained silent in May and declined by 0.2% in April a month ago.
- Through May in 12 months, PPI increased by 2.6% after 2.5% in April. A separate report showed us the stable weekly unemployed claims at 248k last week, while the issued claims increased to the highest level since 1.951 million, or November 2021. This comes to the top of a slight rise in American consumer prices, supporting the case to reduce further monetary policy by Fed.
- Dovish Outlook takes the US dollar to its lowest level since March 2022 during the Asian season on Friday and weighs heavily on the USD/JPY pair. Traders are now ready for the Michigan American Consumer Affairs Index and initial release of inflation expectations. However, Trump’s business policies and the development around the Middle East struggle will be focused on.
USD/JPY needs to clean 144.50 obstacles before any further recovery.
From a technical point of view, the failure of this week is between the negative oscillator on the hour/daily chart per hour/daily in favor of the USD/JPY to find acceptance above the 145.00 psychological sign and later in favor of the decline. However, it would still be prudent to wait for some follow-three sales below 142.65 and 142.35 horizontal support before the situation for deep losses. Spot prices can then be reduced by 142.00 round figure, up to 141.65 intermediate support n route up to 141.00 levels.
On the other hand, around 143.50–143.55 region, recovery beyond the Asian session peak, is likely to face a rigorous barrier near 144.00 points. A continuous strength beyond the latter can trigger a small-trick and allow the USD/JPY pair to climb 144.50 area N routes for 145.00 round figure. Prices in the subsequent move prices can reach 145.45 zones, or a two -week high level can be touched on Wednesday.
US dollar price today
The table below shows a percentage change of US Dollar (USD) against major currencies listed today. The US dollar was the strongest against the Australian dollar.
| USD | EUR | Gbp | JPY | Paaji | Worship | Aristocratic federal | Chef | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.41% | 0.40% | 0.01% | 0.21% | 0.81% | 0.76% | -0.17% | |
| EUR | -0.41% | 0.03% | -0.31% | -0.14% | 0.48% | 0.32% | -0.58% | |
| Gbp | -0.40% | -0.03% | -0.45% | -0.25% | 0.35% | 0.27% | -0.59% | |
| JPY | -0.01% | 0.31% | 0.45% | 0.22% | 0.81% | 0.73% | -0.18% | |
| Paaji | -0.21% | 0.14% | 0.25% | -0.22% | 0.58% | 0.56% | -0.34% | |
| Worship | -0.81% | -0.48% | -0.35% | -0.81% | -0.58% | -0.08% | -0.96% | |
| Aristocratic federal | -0.76% | -0.32% | -0.27% | -0.73% | -0.56% | 0.08% | -0.88% | |
| Chef | 0.17% | 0.58% | 0.59% | 0.18% | 0.34% | 0.96% | 0.88% |
The heat map shows a percentage change of major currencies against each other. The base posture is picked up from the left column, while the quotation posture is raised from the top line. For example, if you choose a US dollar from the left column and go to the Japanese yen along the horizontal line, the percentage change in the box will represent USD (Aadhaar)/JPY (quotation).
