ActionForex.com was set up back in 2004 with the aim to provide insightful analysis to forex traders, serving the trading community for over a decade. Empowering the individual traders was, is, and will always be our motto going forward. Market participants are now focused on the upcoming US Consumer Price Index (CPI) data for April, scheduled for release later today. Economists expect the headline CPI to rise 0.3% month-over-month, maintaining an annual rate of 2.4%, while core CPI is anticipated to increase by 0.3% in April, holding steady at 2.8% year-over-year.

• The pair failed to break below the pivotal $140 level, reinforcing the current upward bias.
• The household budget trends index in housing-related sectors decreased, but it increased in the food and beverage sector.
• FxPro Traders will not be held liable for any losses resulting from trading activities.
• For now, the Federal Reserve Governor Waller’s scenario#2 is playing out.

Market Analysis

• The currency pairs respond more to global trade developments than domestic trends.
• Nonetheless, policymakers emphasized the need to remain flexible and monitor downside risks closely as global uncertainty persists.
• AUD/USD looks to build on the previous day’s strong move up to a fresh weekly top amid a positive risk tone, which underpins the Aussie.

Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence. On the 1 hour chart, we cansee that we have a minor downward trendline defining the bearish momentum onthis timeframe. The sellers will likely continue to lean on the trendline tokeep pushing into new lows, while the buyers will look for a break higher to pilein for a rally into the major trendline.

The buyers will likely continue to lean on the trendline to keep pushinginto new highs, while the sellers will look for a break lower to extend thepullback into the next trendline. On the 4 hour chart, we cansee that we have now an upward trendline defining the bullish structure on thistimeframe. Alongside the Swiss Franc, it’s been the favoured safe haven inthe currencies space and as the sentiment improves, the Yen weakens.

Over the last decade, the BoJ’s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential.

Related pairs

The analysis maintains a bearish function, with the impulsive mode reflecting strong downward momentum. Being positioned within navy blue wave 3, and with orange wave 3 just starting, indicates that sellers dominate the market and further declines are anticipated. Traders are encouraged to seek confirmation of the bearish continuation and closely monitor the invalidation level to effectively manage trading risks.

On the JPY side, thecurrency has been driven mainly by global events rather than domesticfundamentals. Alongside the Swiss Franc, it’s been the favoured safe haven inthe currencies space amid the swings in risk sentiment. On the monetary policyfront, the BoJ kept interest rates unchanged as expected anddelivered a dovish message. One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners.

In Japan, political uncertainty looms, as the ruling Liberal Democratic Party (LDP) lacks a parliamentary majority and may call fresh elections. An LDP victory could strengthen the Yen by ensuring stability, while opposition gains might lead to fiscal expansion and weaken the currency. If no elections occur, bitfinex review a modest budget would likely keep the Yen supported.

So, I expect an attempt to get back to the 200 day EMA before it’s all said and done, with the occasional pullback offering buying opportunities. FxPro Traders will not be held liable for any losses resulting from trading activities. Our analysis reveals a potentially lucrative situation brewing in the Yen market. The heavily oversold conditions indicated by commercial traders (as seen in the Yen Commercial Long/Short Ratio charts) combined with the topping signals in USD/JPY suggest a strong possibility of a Yen reversal.

This chart displays the Commercial Long/Short Ratio for the Japanese Yen, derived from CFTC (Commodity Futures Trading Commission) data. This ratio reflects the positioning of commercial traders (often considered «smart money») in Yen futures contracts. A higher ratio indicates a greater number of long positions relative to short positions, while a lower ratio suggests the opposite. dowmarkets The chart shows a history of the ratio fluctuating within a defined range, historically bouncing between roughly 0.50 and 5.40.

AUD/NZD Price Analysis: Pair Holds Bullish Tone Ahead of Asian Session

The WTI price extends its upside amid easing trade tensions between the United States and China, which prompt traders to dial back odds of a recession. This policy direction is in line with the BoJ’s April 30–May 1 policy meeting summary, which characterized the tariff effects as short-term shocks with limited long-term impact on inflation or growth potential. Nonetheless, policymakers emphasized the need to remain flexible and monitor downside risks closely as global uncertainty persists. Economies.com provides the latest technical analysis of the USD/JPY (Dollar Japanese Yen).

Domestically, Japan recorded a current account surplus of 3.45 trillion yen in March, following a record surplus of 4.06 trillion yen in February. Robinhood agrees to acquire WonderFi for $178M in cash, gaining control of one of Canada’s largest regulated crypto platforms. The deal adds $2.1B CAD in assets under custody to Robinhood’s ecosystem. This acquisition marks Robinhood’s latest global expansion move, following its $200M Bitstamp deal in 2024. The Technical Analysis shows a headline buy/sell % score for a market, calculated from a range of moving averages, oscillators, and pivot points. Uses both traditional moving averages (SMA, EMA) and also averages which are designed to follow changes in price more closely (Hull, Arnaud Legoux).

Positive Investor Sentiment Lifts Japanese Stock Prices:

In the long term, according to the performance on the daily chart, the USD/JPY pair is trading within a descending channel. However, the 14-day Relative Strength Index recently rebounded to avoid moving into oversold levels. Therefore, bulls will target extended rebounds at the resistance level of 147.50, then to the psychological resistance of 150.00, respectively. Conversely, over the same time frame, bears will seek to capitalize on the current wave of declines to move towards the support level of 143.00, then to the psychological support of 140.00, respectively. Gold price struggles to capitalize on the previous day’s modest uptick as the US-China trade deal optimism continues to act as a headwind for safe-haven assets.

USD/JPY Forecast and News

Born in Washington D.C., he received a bachelor’s degree in politics from Princeton University in 1975 and earned a law degree from Georgetown University in 1979. Powell served as an assistant secretary and as undersecretary of the Treasury under President George H.W. Bush. However, the upside remains limited due to the Bank of Japan’s (BoJ) persistently accommodative stance.

Price Action News

The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and axitrader review its display or use. This zone has consistently acted as both resistance and support, capping gains in late March and triggering price reactions in early April, marking it as a significant technical pivot.