Select Language

USD/JPY hesitates at 144.00 with markets awaiting US data

Breaking news

USD/JPY hesitates at 144.00 with markets awaiting US data

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.06.04 19:51
USD/JPY hesitates at 144.00 with markets awaiting US data

update 2025.06.04 19:51

  • The US Dollar loses momentum as the enthusiasm following US Job Openings fades.
  • Investors are looking at the US ADP and Services PMI data for further guidance
  • A bullish engulfing candle on the daily chart suggests a potential trend shift.

The US Dollar's recovery from Monday's lows has lost steam during Wednesday's European trading session. The USD/JPY 4-hour chart shows doji candles at the 144.00 level, highlighting an indecisive market.

The Dollar performed a significant rebound on Tuesday, fuelled by a positive surprise on US JOLTS Job Openings, which rose by 7.39 million in April, beating expectations of a more modest 7.1 million increment.

These figures offset the sharper-than-expected decline in Factory Orders, which follows the downbeat Manufacturing activity report seen on Monday, and add to the evidence of the negative impact of Trump's tariffs on the manufacturing sector.

Market optimism, however, has eased, with investors growing cautious ahead of the US ADP Employment report, which is expected to show a significant increase in payrolls in May, and the ISM Services PMI, which is also expected to have improved in May.

Technical Analysis: A Bullish engulfing candle suggests a trend shift

A look at the daily chart and we observe a bullish engulfing candle on Tuesday, which is often a signal anticipating a trend change. The pair, however, should break above the 144.40 resistance area to confirm that view, and extend gains towards 146.25.

On the downside, immediate support is at 143.65, followed by 142.40.

Japanese Yen FAQs

The Japanese Yen (JPY) is one of the world's most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan's policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors.

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. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen.

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.

The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen's value against other currencies seen as more risky to invest in.



Date

Created

 : 2025.06.04

Update

Last updated

 : 2025.06.04

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

USD/CAD trades cautiously near 1.3650 ahead of US/Canada employment data

The USD/CAD pair strives to hold an almost eight-month low of 1.3635 during Friday's Asian trading session, posted the previous day.
New
update2025.06.06 12:13

NZD/USD remains below 0.6050, pulls back from eight-month highs

NZD/USD is trading around 0.6030 during the Asian hours on Friday after retreating from the eight-month high of 0.6081, reached on Thursday.
New
update2025.06.06 12:10

Canadian PM Carney and China Premier Li discussed trade and bilateral relations

Canadian Prime Minister's Office (PMO) published a statement on Friday, citing that Canada's PM Mark Carney spoke with Chinese Premier Li Qiang about trade and bilateral relations.
New
update2025.06.06 12:09

WTI consolidates around mid-$62.00s; looks to US NFP for fresh impetus

West Texas Intermediate (WTI) US Crude Oil prices oscillate in a narrow band, around mid-$62.00s during the Asian session on Friday, and remain on track to register gains for the first time in three weeks.
New
update2025.06.06 11:54

Japanese Yen continues to decline after weaker Household Spending data

The Japanese Yen (JPY) drifts lower for the second consecutive day on Friday in reaction to the disappointing release of Japan's Household Spending data.
New
update2025.06.06 11:42

EUR/USD holds losses near 1.1450 after retreating from two-month highs

EUR/USD continues to lose ground after pulling back from a two-month high of 1.1495, marked on June 5, currently trading around 1.1440 during the Asian hours on Friday.
New
update2025.06.06 11:35

Australian Dollar extends gains as sentiment improves following a Trump-Xi phone call

The Australian Dollar (AUD) advances against the US Dollar (USD) on Friday, extending its winning streak for the third successive day. Traders await the upcoming US Nonfarm Payrolls (NFP) report, due later in the day, seeking fresh insights into the United States (US) economy.
New
update2025.06.06 10:34

PBOC sets USD/CNY reference rate at 7.1845 vs. 7.1865 previous

The People's Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead on Friday at 7.1845 as compared to the previous day's fix of 7.1865 and 7.1935 Reuters estimate.
New
update2025.06.06 10:17

Japan's Kato: Monetary policy decision is up to BoJ

Japan's Finance Minister Katsunobu Kato, when asked about the US Treasury report on exchange rate, said that the monetary policy decision is up to the Bank of Japan.
New
update2025.06.06 09:54

GBP/USD continues to find fresh highs as Greenback withers

GBP/USD tested its highest bids in over three years on Thursday, briefly climbing above the 1.3600 handle in intraday trading for the first time in 40 months.
New
update2025.06.06 08:06

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel