The Japanese and fighting for attracting buyers; Wait a new boost of the Boj’s policy update

• The Japanese yen weakens below the 145.00 mark against a slightly positive USD on Tuesday.
• The increase in geopolitical tensions limits the losses for safe refuge JPY before the Boj’s policy decision.
• The BOJ is expected to keep interest rates without changes and reduce your bond purchases next year.

The Japanese Yen (JPY) is still defensive in front of his US counterpart for the third consecutive day on Tuesday, in the midst of expectations that the Bank of Japan (Boj) could post USD/JPY beyond the 145.00 psychological brand during the Asian session. However, JPY bassists could refrain from aggressive bets before the crucial policy decision of the BOJ, which is expected to provide more clues about the policy perspective of the Central Bank.

Investors this week will also take into account the result of a two -day FOMC monetary policy meeting on Wednesday, which will play a key role in influencing the USD price dynamics and will provide a new boost to the USD/JPY torque. As the Central Bank’s key event is approaching, the increase in geopolitical tensions in the Middle East could help limit deeper losses for the safe shelter JPY. In addition, the growing acceptance that the US Federal Reserve (Fed) will further reduce indebted costs in 2025 could act as a wind against the USD and limit the uprising potential of the USD/JPY pair.

The Japanese Yen Alcistas remain defensive before the Boj’s policy decision

• The Japanese Yen weakened below the 145.00 brand against the US dollar amid expectations that the Bank of Japan could give up another rate of rates this year due to commercial uncertainties. Japan Prime Minister Shigeru Ishiba, and the US president Donald Trump failed to achieve a breakthrough on tariffs at the Summit of the Seven Group.
• Ishiba wants Trump to eliminate 25% tariffs on Japanese vehicles and reciprocal taxes of 24% on other Japanese imports, which have been suspended until July 9. “There are still some points where the two parties do not agree, so we have not yet reached an agreement on the commercial package,” Istiba told reporters.
• Meanwhile, Japan Finance Minister Katsunobu Kato said there is no fixed plan at this time to hold more conversations with the US Treasury Secretary Scott Besent. Kato added that the highest prices of oil and a lower JPY are not a favorable combination for the Japanese economy, since the country is a large importer of energy.
• The Bank of Japan will announce its policy decision later today and it is widely expected to maintain short -term interest rates at 0.5%. In addition, it is expected that the governor of the Boj, Kazuo Ueda, to indicate his willingness to continue with the rates of rates, since the conflict in climbing between Iran and Israel could increase the prices of crude oil and alter the pricing perspectives.
• Market attention will also focus on the review of the Council on an existing bond purchase reduction plan that extends until the end of the current fiscal year, and a new program that will run until fiscal year 2026. The BOJ will consider reducing bond purchases next year under a quantitative hardening plan (QT).
• In the geopolitical front, the deadly conflict between Israel and Iran has entered its fifth day, with both sides expanding their attacks. Trump, in a social truth publication, warned the Iranians to “evacue Tehran immediately.” A White House official said the publication reflected the urgency of the need for Iran to sit at the table for conversations.
• Investors this week will also evaluate the latest monetary policy update of the Federal Reserve to obtain more clues about the future path of feat cuts. This, in turn, will help determine the following section of a directional movement for the US dollar and the USD/JPY torque.

The USD/JPY needs to find acceptance above 145.00 to support the case of greater appreciation

From a technical perspective, the sustained strength and acceptance above the psychological brand of 145.00 will confirm an upward break through a several weeks negotiation range. Since the oscillators in the daily chart have begun to gain positive traction, the USD/JPY torque could exceed the maximum monthly oscillation, around the region of 145.45, and aspire to conquer the round figure of 146.00. The impulse could extend even more towards the region of 146.25-146.30, or the peak of May 29.

On the contrary, any corrective landslide now seems to find some support near the region of 144.50-144.45 before the 144.00 mark. A convincing rupture below the latter could drag the USD/JPY torque towards the intermediate support of 143.55-143.50 on a route to the round figure of 143.00 and the minimum oscillation last Friday, around the region of 142.80-142.75. This is followed by the lower limit of the negotiation range, around the mid -142.00, which if it is broken, would establish the scenario for the resumption of the bearish trend from the maximum monthly oscillation of May.