{"id":20976,"date":"2025-04-18T03:46:26","date_gmt":"2025-04-18T03:46:26","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=20976"},"modified":"2025-04-18T03:46:26","modified_gmt":"2025-04-18T03:46:26","slug":"yen-holds-7-month-high-as-japan-inflation-slows","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-ca\/analysis\/yen-holds-7-month-high-as-japan-inflation-slows\/","title":{"rendered":"Yen Holds 7-Month High as Japan Inflation Slows"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/image-21-1024x559.png\" alt=\"\" class=\"wp-image-20977\" \/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>USD\/JPY trades at 142.314<\/strong>, holding near a <strong>7-month yen high<\/strong>.<\/li>\n\n\n\n<li>Japan\u2019s <strong>March headline inflation slowed to 3.6%<\/strong>, while <strong>core CPI met expectations at 3.2%<\/strong>.<\/li>\n\n\n\n<li>Bank of Japan is expected to <strong>hold rates at 0.5%<\/strong> next week amid trade concerns and export headwinds.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>The Japanese yen maintained its firm tone on Friday, <strong>hovering near 7-month highs<\/strong> around <strong>142.3 per dollar<\/strong>, following the release of <strong>March inflation data<\/strong> and ahead of next week\u2019s <strong>Bank of Japan (BOJ) policy meeting<\/strong>. The <strong>USD\/JPY pair closed at 142.314<\/strong>, down marginally on the day as sentiment stabilised in the aftermath of key macro data.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">BOJ warns US tariff uncertainty may hurt confidence, economy <a href=\"https:\/\/t.co\/Mn3vJiMARM\">https:\/\/t.co\/Mn3vJiMARM<\/a> <a href=\"https:\/\/t.co\/unVpIaVrCs\">pic.twitter.com\/unVpIaVrCs<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1912781850545738065?ref_src=twsrc%5Etfw\">April 17, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The latest data showed that <strong><a href=\"https:\/\/www.cnbc.com\/2025\/04\/18\/japan-inflation-comes-in-at-3point6percent-surpasses-boj-target-for-three-straight-years-.html\">headline inflation slowed to 3.6%<\/a><\/strong>, the lowest level in four months, as energy base effects kicked in. However, <strong>core inflation<\/strong>\u2014which strips out volatile food prices\u2014<strong>remained sticky at 3.2%<\/strong>, in line with forecasts. This offers the BOJ room to remain cautious, as inflation remains well above the 2% target.<\/p>\n\n\n\n<p>Markets are now watching the <strong>BOJ\u2019s decision next week<\/strong>, where the central bank is widely expected to <strong>keep interest rates on hold at 0.5%<\/strong>, following its recent pivot from negative rates. Policymakers are likely to <strong>revise growth projections downward<\/strong>, reflecting mounting concerns about <strong><a href=\"https:\/\/www.reuters.com\/markets\/asia\/boj-cut-growth-forecast-us-tariffs-hit-sources-say-2025-04-16\/\">U.S. tariffs and weaker external demand<\/a><\/strong>, which could pressure Japan\u2019s <strong>export-heavy economy<\/strong>.<\/p>\n\n\n\n<p>Finance Minister <strong>Shunichi Kato<\/strong> attempted to calm FX market fears, stating that Japan <strong>\u201c<\/strong><strong><a href=\"https:\/\/www.reuters.com\/markets\/currencies\/japan-does-not-manipulate-fx-weaken-yen-finmin-says-2025-04-18\/#:~:text=TOKYO%2C%20April%2018%20(Reuters),its%20currency%20to%20help%20exporters.\">is not manipulating the currency<\/a><\/strong><strong>\u201d<\/strong>, after President Trump reignited criticism of Japan\u2019s exchange rate policies earlier this month.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>The USDJPY 15-minute chart reflects <strong>sideways consolidation<\/strong> following a sharp intraday swing. After hitting a low of <strong>141.611<\/strong>, the pair surged to <strong>143.084<\/strong>, only to retreat and stabilize near the <strong>142.30<\/strong> region. This indicates <strong>indecision<\/strong> in the market as traders weigh risk sentiment and yield differentials.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/1_image-21-1024x446.jpg\" alt=\"\" class=\"wp-image-20978\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: USDJPY flattens out after wild swings between 141.60 and 143.08, as seen on the <\/em><em><a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a><\/em><\/p>\n\n\n\n<p>The <strong>MACD histogram<\/strong> shows a tapering bullish momentum, now flattening near the zero line. The MACD line and signal line are converging, signalling <strong>waning momentum<\/strong> and a possible <strong>range-bound continuation<\/strong> in the near term. The price also remains closely tied to the <strong>5, 10, and 30-period moving averages<\/strong>, reinforcing a <strong>neutral bias<\/strong> unless a breakout above 143.08 or a breakdown below 141.60 occurs.<\/p>\n\n\n\n<p>With BOJ policy now more fluid and global trade risks on the rise, the yen is likely to remain volatile\u2014<strong>acting as both a safe haven and a policy barometer<\/strong> depending on upcoming central bank communication.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a><\/strong><strong> and <\/strong><strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a><\/strong><strong> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>USD\/JPY stabilises around 142.31 after Japan\u2019s inflation data eases and markets brace for next week\u2019s BOJ decision. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":20977,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[45],"class_list":["post-20976","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-yen"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/20976","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=20976"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/20976\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/20977"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=20976"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=20976"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=20976"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}