25 Feb 2025

The Japanese Yen has attracted some dip-buyers following a decline during the Asian session on Tuesday. Ongoing speculation regarding further interest rate hikes by the Bank of Japan (BoJ) continues to support the JPY. However, decreasing Japanese government bond (JGB) yields may limit the JPY's gains and provide support for the USD/JPY pair.

During the Asian session on Tuesday, the Japanese Yen (JPY) experienced a steady increase against the US Dollar, pushing the USD/JPY pair below the mid-149.00 range. The release of Japan's Services Producer Price Index (PPI) earlier in the day highlights the trend of rising wages, which encourages companies to transfer increased labor costs to consumers through price increases. This development, coupled with robust consumer inflation data from Japan, reinforces expectations that the BoJ will implement further interest rate hikes, thereby bolstering the JPY.

Additionally, a generally cautious market sentiment has contributed to increased demand for the JPY as a safe haven, which, along with a new wave of selling pressure on the US Dollar (USD), has placed downward pressure on the USD/JPY pair. Furthermore, comments from BoJ Governor Kazuo Ueda last week indicated that the central bank is prepared to enhance government bond purchases if long-term interest rates rise significantly, which has kept JGB yields subdued below a multi-year high.

Resistance Levels:

157.923: This level serves as immediate resistance; a significant breakthrough here may indicate the potential for further upward movement.

158.742 and 159.672: These represent higher targets should the bullish trend persist.


158.45: This marks the high-close from April; a successful breach could lead to the 1990 high at 160.40 being tested.


Support Levels:

156.932: Identified as a pivot point; maintaining a position above this level strengthens bullish momentum.

155.965: This is the immediate support level; a decline below it may prompt a test of lower price levels.

154.89: This corresponds to the low-day close in June; additional support is found in the range of 152.70-153.40, a critical area highlighted by various technical indicators.


The Relative Strength Index (RSI) is currently at 65, reflecting robust bullish momentum, although it is approaching overbought conditions. The 50-day Exponential Moving Average (EMA) at 156.769 acts as a supportive factor for the upward trend, functioning as a significant dynamic support level.