Prime Minister Shindo's dovish remarks put pressure on the Japan
Following the announcement on Monday by Japanese Economy Minister Yoshitaka Shindo that the government will "continue efforts for primary balance to reach within surplus territory in FY 2025," the value of the Japanese yen (JPY) has declined. Real economic growth of 1.3% in FY 2025 is not so unrealistic, according to Shindo, who also voiced optimism, according to Reuters.
The Tokyo Consumer Price Index (CPI) for Japan increased from 1.8% year-over-year increase in April to 2.2% in May, according to data released on Friday. A decrease in Japan's overall inflation rate would probably discourage the Bank of Japan (BoJ) from hiking interest rates. The significant interest rate disparity that exists between Japan and other nations keeps the Japanese Yen under pressure and helps to strengthen the USD/JPY pair.
Technical Analysis: USD/JPY tests the key level of 157.50
On Monday, the USD/JPY pair trades at about 157.40. The four-hour chart exhibits a symmetrical triangular formation upon analysis, suggesting a little halt in the overall bullish trend. The 72-day EMA, which provides significant support, is still below the market. indicating that there is still a bullish tilt for the pair.
The psychological level of 158.00 serves as the next goal for the USD/JPY pair, which is now testing the top boundary of the symmetrical triangle. The pair might test 160.19 again, if there is a breach above this level.
On the other hand, the psychological level of 157.00 offers instant support, and the 72-day EMA is located at 156.65. The USD/JPY pair may continue to decline and move into the region surrounding the symmetrical triangle's lower border.
The Tokyo Consumer Price Index (CPI) for Japan increased from 1.8% year-over-year increase in April to 2.2% in May, according to data released on Friday. A decrease in Japan's overall inflation rate would probably discourage the Bank of Japan (BoJ) from hiking interest rates. The significant interest rate disparity that exists between Japan and other nations keeps the Japanese Yen under pressure and helps to strengthen the USD/JPY pair.
Technical Analysis: USD/JPY tests the key level of 157.50
On Monday, the USD/JPY pair trades at about 157.40. The four-hour chart exhibits a symmetrical triangular formation upon analysis, suggesting a little halt in the overall bullish trend. The 72-day EMA, which provides significant support, is still below the market. indicating that there is still a bullish tilt for the pair.
The psychological level of 158.00 serves as the next goal for the USD/JPY pair, which is now testing the top boundary of the symmetrical triangle. The pair might test 160.19 again, if there is a breach above this level.
On the other hand, the psychological level of 157.00 offers instant support, and the 72-day EMA is located at 156.65. The USD/JPY pair may continue to decline and move into the region surrounding the symmetrical triangle's lower border.
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