{"id":23477,"date":"2025-07-25T07:02:41","date_gmt":"2025-07-25T07:02:41","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=23477"},"modified":"2025-07-25T07:02:41","modified_gmt":"2025-07-25T07:02:41","slug":"japanese-yen-dips-on-trade-deal-news","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-eu\/analysis\/japanese-yen-dips-on-trade-deal-news\/","title":{"rendered":"Japanese yen dips on trade deal news"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/4-4-1-1024x536.png\" alt=\"\" class=\"wp-image-23483\" srcset=\"https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/4-4-1-1024x536.png 1024w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/4-4-1-300x157.png 300w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/4-4-1-768x402.png 768w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/4-4-1-500x262.png 500w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/4-4-1-400x209.png 400w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/4-4-1-350x183.png 350w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/4-4-1-200x105.png 200w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/4-4-1.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>The Japanese yen remains under pressure as shifting economic signals and trade developments shape market sentiment. This analysis breaks down the key drivers behind the USD\/JPY movement, technical trends, and what traders should keep an eye on next.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Japanese yen weakens further as USD\/JPY extends rally<\/strong><\/h2>\n\n\n\n<p>The Japanese yen continued to depreciate against the US dollar on Friday, with the USD\/JPY pair closing at 147.311 after peaking at 147.496.<\/p>\n\n\n\n<p>This marked the second consecutive day of gains, with the pair rebounding from a session low of 145.856.<\/p>\n\n\n\n<p>Traders responded to the implications of a revised US-Japan trade agreement and newly released inflation figures from Tokyo.<\/p>\n\n\n\n<p><\/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\">The US and Japan this week reached what Trump called the largest trade deal in history after Tokyo pledged to set up a $550 billion fund for investment into the US <a href=\"https:\/\/t.co\/uXVj46lCnB\">https:\/\/t.co\/uXVj46lCnB<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1948531913142030701?ref_src=twsrc%5Etfw\">July 24, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>The updated trade deal reduced tariffs on Japanese exports to 15%, down from the previously proposed 25% under the Trump administration.<\/p>\n\n\n\n<p>While this eased some pressure on Japanese exporters, it also underscored lingering trade uncertainties \u2013 posing a challenge for the Bank of Japan (BOJ) as it navigates policy decisions.<\/p>\n\n\n\n<p>From a macroeconomic perspective, Tokyo\u2019s core inflation data for July came in slightly below forecasts, though it remained above the BOJ\u2019s 2% target.<\/p>\n\n\n\n<p>This sustained inflation level is fuelling speculation around a possible interest rate hike later in the year, despite expectations that the central bank will leave rates unchanged at its upcoming policy meeting.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Technical analysis<\/strong><\/h2>\n\n\n\n<p>On the 15-minute USD\/JPY chart, a clear bullish trend is evident. The pair opened the session at 146.982 and closed higher at 147.311, breaking through several resistance levels along the way.<\/p>\n\n\n\n<p>The MACD (12,26,9) is positioned above the zero line, showing a fresh bullish crossover. In addition, short- to mid-term moving averages (5, 10, and 30) are aligned beneath the price, reinforcing the current upward momentum. The pair is currently trending with a 0.22% gain.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"450\" src=\"https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/image-26-1024x450.jpeg\" alt=\"\" class=\"wp-image-23478\" srcset=\"https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/image-26-1024x450.jpeg 1024w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/image-26-300x132.jpeg 300w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/image-26-768x337.jpeg 768w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/image-26-500x220.jpeg 500w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/image-26-400x176.jpeg 400w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/image-26-350x154.jpeg 350w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/image-26-200x88.jpeg 200w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/image-26.jpeg 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Picture: USDJPY firms above 147.30 as dollar momentum holds, as seen on the <a href=\"https:\/\/apps.apple.com\/au\/app\/vt-markets-online-trading\/id1372647263?mt=8\" target=\"_blank\" rel=\"noopener\" title=\"VT Markets app\">VT Markets app<\/a>.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Earlier this week, BOJ Deputy Governor Shinichi Uchida maintained a cautious outlook, suggesting the central bank is unlikely to tighten policy prematurely given ongoing volatility in global trade.<\/p>\n\n\n\n<p>However, speculation continues to grow that the <a href=\"https:\/\/www.reuters.com\/business\/trade-deal-clears-way-boj-tiptoe-back-rate-hikes-2025-07-25\/\" target=\"_blank\" rel=\"noopener nofollow\" title=\"BOJ may adjust its inflation forecast higher\">BOJ may adjust its inflation forecast higher<\/a> in its forthcoming quarterly economic report \u2013 particularly if rising energy and import costs persist, driven by yen weakness.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Cautious forecast<\/strong><\/h2>\n\n\n\n<p>A sustained breakout above the 147.50 resistance level could reinforce bullish momentum, paving the way for a move toward the next key technical zone around 148.20.<\/p>\n\n\n\n<p>This level may serve as a psychological barrier, and a decisive close above it could open the door to further upside in the near term.<\/p>\n\n\n\n<p>However, with the upcoming Bank of Japan policy meeting and evolving inflation dynamics both in Japan and globally, heightened market volatility is expected.<\/p>\n\n\n\n<p>Traders should remain cautious, as any surprise in the BOJ\u2019s tone \u2013 particularly a shift toward more hawkish language \u2013 could quickly reverse sentiment.<\/p>\n\n\n\n<p>A stronger-than-expected stance on inflation or forward guidance could prompt a corrective pullback, with 146.80 acting as the immediate support area.<\/p>\n\n\n\n<p>Additionally, broader market drivers such as US economic data, Treasury yields, and geopolitical headlines could amplify intraday price swings.<\/p>\n\n\n\n<p>As a result, maintaining a flexible trading strategy and closely monitoring central bank communication will be crucial in the days ahead.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Click <a href=\"https:\/\/www.vtmarkets.net\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\" target=\"_blank\" rel=\"noopener\" title=\"here\">here<\/a> to open account and start trading.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Japanese yen remains under pressure as shifting economic signals and trade developments shape market sentiment. This analysis breaks down the key drivers behind the USD\/JPY movement, technical trends, and what traders should keep an eye on next. Japanese yen weakens further as USD\/JPY extends rally The Japanese yen continued to depreciate against the US <a href=\"https:\/\/www.vtmarkets.com\/en-eu\/analysis\/japanese-yen-dips-on-trade-deal-news\/\" class=\"read-more\">Continue Reading<\/a><\/p>\n","protected":false},"author":5,"featured_media":23483,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37],"tags":[],"class_list":["post-23477","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/posts\/23477","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/comments?post=23477"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/posts\/23477\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/media\/23483"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/media?parent=23477"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/categories?post=23477"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/tags?post=23477"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}