The Japanese yen bounces from minimum of several weeks against the dollar after an underlying IPC of tokyo strongest

• The Japanese Yen attracts some buyers after the publication of a strong data from the Tokyo IPC.
• The hard line posture of the BOJ and the feeling of risk aversion support the jpy of safe refuge.
• The US PCE price index that will be published later this Friday should provide a new impulse to USD/JPY.

The Japanese Yen (JPY) falls to a minimum of almost four weeks in front of his American counterpart during Friday’s Asian session, amid concerns that the commercial tariffs of US President Donald Trump could affect the country’s key exports. However, the JPY troists obtained some relief after the publication of strong consumer inflation data of Tokyo (the capital of Japan), which keeps open the possibility of more increases in interest rates by the Bank of Japan (BOJ). In addition, the Boj’s opinions summary indicated that an increase in rates remains on the table if the economy and prices move in line with the forecasts.

Apart from this, the risk aversion environment, fed by Trump’s automotive tariffs at the end of Wednesday, turns out to be another factor that supports the jpy of safe shelter and drags the USD/JPy torque below the brand of 151.00 in the last hour. That said, the appearance of some purchases in the fall of the US dollar (USD) could offer support to the currency pair and help limit additional losses. In addition, the operators could refrain from carrying out directional bets and choose to wait for the US Personal Consumption Expenditure Index (PCE) to obtain clues about the trajectory of federal reserve features (FED).

The Japanese Yen Alciers seek

• The US President Donald Trump announced on Wednesday a 25% tariff on imported light cars and trucks that will enter into force on April 3. This feeds the concerns that tariffs would have a high reach impact on the automotive industry of Japan, which represents approximately 3% of the gross domestic product.
• The most early published data this Friday showed that the general consumer price index (CPI) rose 2.9% in March from the previous 2.8%. In addition, the underlying IPC of Tokyo, which excludes volatile fresh food prices, rose to 2.4% during the month reported from 2.2% in February.
• Adding to this, a central reading that excludes both the volatile prices of fresh and energy foods grew 1.9% in the month before 2.2% in March. This is now above the annual objective of 2% of the Bank of Japan and supports the case for more increases in interest rates by the Japanese Central Bank.
• The summary of opinions of the Boj of the March meeting revealed a consensus to continue increasing the rates if the economy and prices move in line with the forecasts. However, the Board considered that the policy must be stable at the moment, since the downward risks for the economy have increased due to US tariff policy.
• The feeling of global risk suffered a coup in reaction to Trump’s automotive tariffs and concerns that reciprocal tariffs next week will affect the growth of the US. This eclipsed an upward review of the GDP of the fourth quarter of the US, which showed that the economy grew at an annualized rhythm of 2.4% against 2.3% in the previous estimate.
• The president of Richmond, Thomas Barkin, warned Thursday that the economic uncertainty promoted by the Trump administration policy could reduce the expense of consumers and companies, and will force the Central Bank to adopt a waiting approach and see instead of the proactive position that most of the investors expect.
• The president of the Boston Fed, Susan Collins, said that the challenge of the US Central Bank at this time is to choose between maintaining a restrictive policy position or trying to advance data that could deteriorate in the future. Given the perspective, Collins expects the Fed to keep the stable rates for longer.
• Investors now expect the publication of the US Personal Consumption Expenditure Index (PCE), which could offer new clues about the future trajectory of fees of fees of the Fed. This, in turn, will boost the US dollar and will provide a significant impulse to the USD/JPY torque.

The technical configuration of the USD/JPY supports the prospects for the appearance of purchases in the fall at lower levels

From a technical perspective, the intimate setback from the neighborhood of the monthly peak justifies the caution before making new upward bets around the USD/JPy and positioning for additional profits. Meanwhile, the oscillators in the daily chart have begun to gain positive traction and support the prospects for the appearance of some purchases in the fall near the psychological level of 150.00. However, some continuation sales below the region of 149.85-149.80 would cancel the positive bias and drag cash prices towards the support zone of 149.25 en route to the round figure of 149.00 and the following relevant support near the region of 148.65.

On the contrary, a movement beyond the monthly peak, around the area of ​​151.30, could face some resistance near a simple mobile (SMA) of 200 days technically significant, currently located near the region of 151.65. A sustained strength beyond the latter will be seen as a new detonator for the bullies and will allow the USD/JPY to recover the 152.00 mark. The positive impulse could extend even more towards the region of 152.45-152.50 Before cash prices try to challenge the 100-day SMA, around the round number of 153.00.