USD/JPY Forecast: Dollar has no chances against its Asian rival

Valeria Bednarik FXStreet

USD/JPY Current price: 107.90

Japanese annual inflation continued to print negative numbers in March.
Stocks remain in the red, US Treasury yields are in retreat mode.
USD/JPY trades below the 108.00 level and maintains its bearish stance.

The American currency is under selling pressure as the week comes to an end, as upbeat European data overshadows risk-averse headlines. The USD/JPY pair trades at the lower end of its monthly range and near a daily low of 107.79. And while the greenback weakens against its major rivals, US Treasury yields remain near weekly lows and equities trade in the red, all of which favors another leg lower for the pair.

Earlier in the day, Japan published March National Inflation, which decreased by 0.2% YoY, worse than anticipated. The core annual reading, which excludes fresh food prices, improved to -0.1% from the previous -0.4%. The country also published the preliminary estimate of the April Jibun Bank Manufacturing PMI, which printed at 53.3, much better than the previous 52.7.

During the American session, Markit will release the preliminary estimates of April PMIs. Manufacturing output is foreseen improving from 59.1 to 60.5, while the services index is expected at 61.5 vs the previous 60.4.

USD/JPY short-term technical outlook

From a technical point of view, the USD/JPY pair is poised to extend its slump. Trading at levels last seen in early March, the pair continues to achieve lower low daily basis. In the near-term, and according to the 4-hour chart, the pair keeps developing below its moving averages. The 20 SMA has partially lost its bearish strength, but the longer ones accelerated their slumps well above the current level. Technical indicators are directionless but within negative levels and without signs of bearish exhaustion.

Support levels: 107.65 107.20 106.90

Resistance levels: 108.20 108.50 108.90

View Live Chart for the USD/JPY

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD tilts bullish as markets barrel toward mid-week NFP print

GBP/USD is holding a broader bullish structure on the daily chart, with price trading well above the 50 Exponential Moving Average at 1.3507 and the 200 EMA at 1.3310, confirming the intermediate uptrend that has been in place since the November 2025 low near 1.2300.

Gold falls below $5,050 as traders await US jobs data

Gold price attracts some sellers near $5,035 during the early Asian session on Tuesday. The precious metal edges lower amid improved risk sentiment and some profit-taking. Traders brace for key US economic data later this week, including delayed employment and inflation reports.

Litecoin eyes $50 as heavy losses weigh on investors

Following a strong downtrend across the crypto market over the past week, Litecoin holders are under immense pressure. The Bitcoin fork has trimmed about $1.81 billion from its market capitalization since the beginning of the year, sending it below the top 20 cryptos by market cap.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.