Weekly Analysis List
USD/JPY Weekly Analysis
4/7/25
Market Overview
As of April 7, 2025, the USD/JPY currency pair is experiencing significant volatility due to recent geopolitical developments and technical factors.
Recent Performance:
Price Movements: The pair declined to approximately 145.43, indicating a bearish trend.
Technical Analysis:
Support and Resistance Levels:
Support: 145.00
Resistance: 146.90
Technical Indicators:
Relative Strength Index (RSI): On the 4-hour chart, the RSI is trending lower but remains above the oversold threshold, suggesting continued bearish momentum.
Exponential Moving Average (EMA): The pair is trading below the 50-day EMA, indicating a bearish trend.
Fundamental Factors:
U.S. Tariffs: The recent imposition of a 25% tariff on Japanese auto imports and a 24% levy on other Japanese goods by the U.S. administration may impact Japan's export-driven economy, potentially reducing economic growth by up to 0.8%.
Bank of Japan (BOJ) Policy: In response to these tariffs, the BOJ may reconsider the timing of its interest rate hikes. While a rate increase at the May 1 meeting appears unlikely, analysts suggest that the central bank could still raise rates as early as June or July to address domestic inflationary pressures.
Conclusion
Outlook:
The trajectory of USD/JPY will likely be influenced by ongoing trade developments between the U.S. and Japan, as well as monetary policy decisions by the BOJ. Traders should monitor support and resistance levels closely and stay attuned to geopolitical events that may impact market sentiment.