While the USDJPY rate is strengthening, the currency pair remains under pressure, currently trading at 142.43. Discover more in our analysis for 29 April 2025.
USDJPY forecast: key trading points
- Investor attention is focused on the upcoming Bank of Japan meeting
- The BoJ is expected to keep its interest rate at 0.5%
- USDJPY forecast for 29 April 2025: 141.05
Fundamental analysis
The USDJPY rate is recovering after the previous session’s decline. Buyers are defending the 142.25 support level, preventing the price from consolidating lower. However, pressure on the US dollar intensified after investors failed to see clear signs of de-escalation in the US-China trade conflict.
US Treasury Secretary Scott Bessent stated that the initiative for starting negotiations lies with China, while Donald Trump insisted that progress had been made – claims which Beijing continues to deny. This uncertainty has increased selling pressure on the US dollar.
Market participants are now awaiting the upcoming Bank of Japan monetary policy meeting. The regulator is expected to maintain its benchmark rate at 0.5%, while monitoring the potential impact of US tariffs on the Japanese economy. If such conditions persist, downward pressure on the USDJPY pair may intensify.
The USDJPY rate remains under pressure after a failed attempt to sustain a bullish correction. Sellers regained control, which is confirmed by a rebound from the EMA-65 Moving Average. Today’s USDJPY forecast suggests bearish momentum could develop towards the 141.05 level. The Stochastic Oscillator is bouncing off the resistance level and reversing from overbought territory, signalling the exhaustion of the bullish impulse. Price consolidation below 142.15 will confirm the scenario, indicating a breakout below the lower boundary of a bearish Flag pattern.
Summary
The USDJPY rate is recovering after recent losses; however, ongoing US-China trade uncertainty and anticipation ahead of the BoJ meeting sustain downside risks. The USDJPY technical analysis points to strengthening bearish momentum, with a breakout below 142.15 likely to signal the implementation of the Flag pattern with a target at 141.05.
Source: Roboforex
