- The Japanese Yen attracts strong follow -up purchases in reaction to the optimistic GDP of the fourth quarter.
- Optimism about the delay of Trump’s reciprocal tariffs provides an additional impulse to the JPY.
- The USD weakens about a minimum of two months and contributes even more to the fall of the USD/JPY torque.
The Japanese Yen (JPY) was strengthened in all areas after the publication of a solid report of the Gross Domestic Product (GDP), which showed that Japan’s economic growth exceeded expectations in the fourth quarter. This adds to the signs of a generalized inflationary pressure in Japan and reaffirms the bets of the market that the Bank of Japan (BOJ) will further raise interest rates, which, in turn, provides a good impulse to the JPY.
Apart from this, the optimism about a delay in the reciprocal tariffs of the president of the USA, Donald Trump, and the reduction of the rate differential between the US and Japan turn out to be other factors that provide support to the low performance JPY . The US dollar (USD), on the other hand, weakens about a minimum of two months touched on Friday, which drags the USD/JPy torque down for the third consecutive day, to the region of 152.75 during the Asian session.
Japanese Yen bullies maintain control in the midst of growing bets due to new uphols for the Boj
- The data published on Monday showed that the economy of Japan expanded 0.7% in the October-December quarter compared to the revised reading of the anterior quarter of 0.4%.
- The annual growth rate accelerated 1.7% reviewed in the third quarter to 2.8%, which supports the plan of the Bank of Japan to continue raising rates amid signs of generalized inflation in Japan.
- Japan’s Minister of Economy, Ryosei Akazawa, said he hopes that the economy will continue with a modest recovery, although he pointed out the need to be aware of the external economic risks.
- Kyodo News, based in Tokyo, reported on Sunday that Japan had requested to be exempt from 25% tariffs on the steel and aluminum of the US president, Donald Trump, and of the so -called reciprocal tariffs.
- This follows Trump’s order on Thursday to formulate plans for reciprocal tariffs in each country that imposes taxes on US imports, although he refrained from announcing immediate taxes.
- This, together with the discouraging US retail sales figures published on Friday, keeps the US dollar depressed near its lowest level since December 17 and weighs on the USD/JPY torque.
- The US Census Office reported that retail sales fell 0.9% in January, worse than the 0.1% expected decrease and the 0.7% increase (reviewed from 0.4%) in December.
- The US Secretary of State, Marco Rubio, said on Sunday that conversations with Russia this week were an opportunity to see how serious is Russian president, Vladimir Putin, about La Paz.
- To this is added that Trump said he was working hard to achieve peace and that he believed that he could meet very soon with Putin to discuss the end of the prolonged war in Ukraine.
The USD/JPY seems vulnerable while below the 200 -day SMA, around the 152.70 zone
From the current levels, the area of ​​151.45-151.40 could offer immediate support before the region of 150.95-150.90, or the lowest level since December 10 touched earlier this month. Since the oscillators in the daily chart are maintained in negative territory, some follow -up sales would be seen as a new trigger for bassists. The USD/JPY torque could then accelerate the fall towards the psychological brand of 150.00 on a route to the 149.60-149.55 area, the round figure of 149.00 and the minimum of December 2024, around the region of 148.65.
On the positive side, any significant recovery beyond the 152.00 mark could face a strong obstacle near the area of ​​152.70, or the simple mobile average (SMA) of 200 days. This is followed by the 100 -day SMA, currently located near the region of 153.15, which if it clearly clears could trigger a short coverage rally. The next rise movement has the potential to bring to the USD/JPY torque beyond the round number of 154.00, to the 154,45-154.50 offer zone on the route to the maximum of last week, around the region of 154.75- 154.80.
Economic indicator
Anuced Gross Domestic Product
The GDP published by the Cabinet Office It is an estimate of the total value of the goods and services produced in Japan. GDP is considered a measure of global economic activity and indicates the growth rate of the economy of a country. A reading superior to expectations is bullish for Yen, while a lower reading is bassist.
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Last publication:
Dom Feb 16, 2025 23:50 (PREL)
Frequency:
Quarterly
Current:
2.8%
Dear:
1%
Previous:
1.2%
Fountain:
Japanese Cabinet Office
FAQS tariffs
Although tariffs and taxes generate government income to finance public goods and services, they have several distinctions. Tariffs are paid in advance in the entrance port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while tariffs are paid by importers.
There are two schools of thought among economists regarding the use of tariffs. While some argue that tariffs are necessary to protect national industries and address commercial imbalances, others see them as a harmful tool that could potentially increase long -term prices and bring to a harmful commercial war by promoting reciprocal tariffs.
During the election campaign for the presidential elections of November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy. In 2024, Mexico, China and Canada represented 42% of the total imports of US Therefore, Trump wants to focus on these three nations by imposing tariffs. It also plans to use the income generated through tariffs to reduce personal income taxes.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
