The Japanese yen quotes with a slight positive bias against the USD; Bulls seem not compromised

• The Japanese Yen attracts some buyers on Tuesday, although he lacks follow -up.
• The concerns that Trump’s tariffs impact Japan’s industries limit JPY’s profits.
• Divergent expectations between the BOJ and the Fed favor the bassists of the USD/JPY in the middle of a moderate demand of the USD.

The Japanese Yen (JPY) advances in front of his American counterpart during the Asian session on Tuesday and, for now, seems to have stopped the decline fall of the previous day from a maximum of more than a week. The Tankan Survey of the Bank of Japan (BOJ) showed that Japanese companies raised their inflation forecasts for one year, three years and five years ahead. This, in turn, supports the possibility of more rates increases by the BOJ and turns out to be a key factor that supports the JPY. In addition, a modest recoil of the US dollar (USD) keeps depressed to the USD/JPy torne below the 150.00 psychological brand.

However, JPY bundles lack conviction in the middle of a positive turn in the feeling of global risk, which tends to undermine the safe refuge currency. Apart from this, the decreasing expectations that the BOJ will increase the policy rate at a faster rate, amid concerns about an economic deceleration due to US tariffs, they act as a wind against the JPY. However, the hard line perspective of the BOJ still marks a great divergence compared to the bets that the Federal Reserve (Fed) will soon resume its cycle of rate cuts. This, in turn, suggests that the path of lower resistance for the JPY of lower performance is still upwards.

Japanese Yen receives support from bets that the BOJ will continue to increase interest rates

• The Tankan Survey of the Bank of Japan published on Tuesday showed that business confidence in the great manufacturers of Japan weakened in the first quarter (Q1) of 2025. The feeling index of the large manufacturers stood at 12.0 in Q1, in the face of the previous reading of 14.0, in line with consensus estimates. Additional details revealed that the perspectives of the great manufacturers for the first quarter reached 12.0 compared to 13.0 previous and 9.0 expected.
• In addition, Japanese companies project that consumer prices will increase 2.5% by one year and 2.4% in three years, compared to an increase of 2.4% and 2.3%, respectively, in the previous survey. They also predicted that inflation will increase 2.3% in five years compared to a 2.2% increase in the previous survey. This adds to the strong inflation figures of the Tokyo consumer, the capital of Japan, and reaffirms the bets that the BOJ could continue to increase interest rates in 2025.
• The president of the USA, Donald Trump, last week presented a 25% tariff on imported cars and will announce reciprocal tariffs later today, at 19:00 GMT. Investors are still concerned that the new levies have a high range impact on Japan’s key industries and force BOJ to maintain stable policy at the moment. Apart from this, a positive tone around Asian shares markets could stop the operators of carrying out bullish bets around the Japanese safe refuge.
• The US dollar, on the other hand, continues with its struggle to attract significant buyers amid concerns that Trump’s commercial tariffs would affect economic growth. In addition, the global escape towards the safety and expectations of multiple rates cuts by the Federal Reserve drag the yields of the US Treasury bonds the narrowing resulting from the rate differential between the US and Japan provides additional support to the JPY of lower performance during the Asian session on Tuesday.
• The operators now expect the important macroeconomic releases of the USA scheduled for the beginning of a new month, starting with Jolts and the ISM manufacturing PMI on Tuesday. This will be followed by the ADP Report on Wednesday, the US ISM PMI on Thursday and the expected Non -Agricultural Payroll (NFP) of the United States on Friday. This will play a key role in the influence of the USD and provide a significant impulse to the USD/JPY torque.

The USD/JPY seems vulnerable; Recook towards the lower limit of a broken ascending channel of several months at stake

From a technical perspective, the rupture during the night below the lower end of an ascending trend channel of several weeks was seen as a key trigger for the bassists of the USD/JPY. However, neutral oscillators in the daily chart and resistance during the night below the simple mobile average (SMA) of 100 periods in the daily chart justify the caution before positioning themselves for greater losses. Therefore, any posterior landslide could find some support near the 149.00 mark before the minimum of the previous night, around the 148.70 area. Some continuation sales will reaffirm the negative bias and make cash prices vulnerable to resume a well -established bearish trend observed during the last three months approximately.

On the other hand, an impulse beyond the peak of the previous day, around the 150.25 area, could raise the USD/JPY to the obstacle of 150.75-150.80 and allow the bullies to recover the mark of 151.00. This is followed by the monthly March of March, around the region of 151.30 and an SMA of 200 days technically significant, currently located near the 151.60 zone. A sustained fortress beyond the latter could change the bias in favor of the bullies and raise the torque to the brand of 152.00 en route to the region of 152.45-152.50 and the 100-day SMA, around the round figure of 153.00.