USDJPY Downtrend - Japanese Yen supported by government
Updated
USDJPY trend forecast January 17, 2025
The Japanese Yen (JPY) encounters some intraday selling pressure after reaching a near one-month high against the US Dollar during the Asian session on Friday. However, significant JPY weakness appears limited, as growing expectations of another rate hike by the Bank of Japan (BoJ) next week remain supportive. These expectations have been reinforced by recent comments from BoJ Governor Kazuo Ueda and Deputy Governor Ryozo Himino. Additionally, a cautious market sentiment bolsters the JPY's appeal.
Meanwhile, signs of easing inflation in the United States raise the possibility that the Federal Reserve (Fed) may consider rate cuts by year-end. This has contributed to a steep decline in US Treasury yields since the start of the week, narrowing the yield gap between the US and Japan, thereby supporting the JPY. Furthermore, the Fed's dovish outlook has kept the US Dollar (USD) under pressure near a one-week low, likely restraining the USD/JPY pair's recovery attempts.
The weakening of JPY amid political and economic instability, which is being controlled by the government, is helping to improve JPY. A signal that the USDJPY depreciation cycle will continue.
/// SELL USDJPY : zone 155.450 - 155.650
SL: 155.950
TP: 40 - 70 - 200pips ( 153.650 )
Safe and profitable trading
The Japanese Yen (JPY) encounters some intraday selling pressure after reaching a near one-month high against the US Dollar during the Asian session on Friday. However, significant JPY weakness appears limited, as growing expectations of another rate hike by the Bank of Japan (BoJ) next week remain supportive. These expectations have been reinforced by recent comments from BoJ Governor Kazuo Ueda and Deputy Governor Ryozo Himino. Additionally, a cautious market sentiment bolsters the JPY's appeal.
Meanwhile, signs of easing inflation in the United States raise the possibility that the Federal Reserve (Fed) may consider rate cuts by year-end. This has contributed to a steep decline in US Treasury yields since the start of the week, narrowing the yield gap between the US and Japan, thereby supporting the JPY. Furthermore, the Fed's dovish outlook has kept the US Dollar (USD) under pressure near a one-week low, likely restraining the USD/JPY pair's recovery attempts.
The weakening of JPY amid political and economic instability, which is being controlled by the government, is helping to improve JPY. A signal that the USDJPY depreciation cycle will continue.
/// SELL USDJPY : zone 155.450 - 155.650
SL: 155.950
TP: 40 - 70 - 200pips ( 153.650 )
Safe and profitable trading
Trade active
+ 25 pips , signal SELL USDJPY zone 155.450 - 155.650 , nice 
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