The Japanese Yen (JPY) gained notable ground on Thursday, pushing USD/JPY toward 143.00, its lowest level in two weeks. The move was driven by a mix of upbeat Japanese economic data, renewed speculation of Bank of Japan (BoJ) rate hikes, and mounting global geopolitical concerns, which lifted safe-haven demand.
The decline in the US Dollar (USD) was further amplified by Moody’s downgrade of the U.S. credit rating, weakening investor sentiment and triggering a broad sell-off in USD pairs.
Japan’s Core Machinery Orders surged 13.0% YoY in March, defying expectations of a 1.6% decline. This marks the strongest reading in nearly 20 years and signals a healthy rebound in corporate investment — easing recession concerns and supporting the case for further BoJ rate hikes in 2025.
Market expectations for Japan’s policy tightening were already growing amid signs of persistent inflation and rising wages. The BoJ has hinted that improving domestic conditions may allow a gradual exit from ultra-loose monetary policy, which continues to support the Yen.
Risk sentiment turned sour following headlines from both the U.S. and global political stage:
Additionally, Fed officials voiced growing concern over weakening consumer and corporate sentiment, citing uncertainty surrounding trade and fiscal policies.
Price Level: 143.00 (2-week low)
Key Technical Zones:
Type | Level |
---|---|
Resistance | 144.40 → 145.00 → 145.40 |
Immediate Support | 143.20 → 143.00 |
Breakdown Target | 142.40 → 142.00 |
Unless buyers reclaim the 144.40–145.00 region, the bias remains tilted to the downside. A break below 143.00 could trigger technical selling and drive the pair toward the next major support at 142.00.
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