Japanese Yen continues to ease back on calm Monday

Monday markets opened on a calm note after recent volatility.
The Yen has course-corrected after a recent surge.
Markets await the BoJ’s next move before making any decisions.

Joshua Gibson FXStreet

The Japanese Yen (JPY) continued to ease on Monday, falling to a one-week low against the US Dollar (USD) as markets ease off of the JPY gas pedal. The Bank of Japan’s (BoJ) recent hawkish pivot into its highest interest rate in years near 0.25% saw a large-scale unwinding of the Yen carry trade. Coupled with a recent bout of “Yenterventions” in order to defend the Yen, JPY has soared over 12.5% from multi-decade lows against the Greenback.

Market focus will pivot to US inflation data this week, with traders looking down the barrel of a fresh Consumer Price Index (CPI) inflation print on Wednesday. Japanese Gross Domestic Product (GDP) figures are also due later in the week, and could provide markets with a signal of how the BoJ plans to go about the business of trying to keep growth and inflation within Japan on the positive side.

USD/JPY price forecast

A broad-base recovery in the Yen helped to drag USD/JPY down from multi-decade highs, sending the pair plunging below the 200-day Exponential Moving Average (EMA) at 151.84. The pair reached a floor near 142.00 before buoying back to test the 148.00 region.

It’s still well too early to call a trend reversal in Yen pairs, with bidders stepping back into the Dollar-Yen trade and sending bids on a 4.4% recovery rally over the past week and a bit. Continued upside is on the cards as bulls send price action back towards the 200-day EMA, with technical support from rising trendlines helping to keep the bullish trend’s keel pointed in the right direction

USD/JPY daily chart

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

AUD/USD stays bid above 0.7100 on Australian trade data, Mideast optimism

AUD/USD clings to minor recovery gains above 0.7100 in the Asian session on Thursday as a new Israel-Lebanon ceasefire keeps a lid on the safe-haven US Dollar. Meanwhile, strong AustralianTrade Balane data also help the Aussie pair sustain the bounce from weekly lows.

USD/JPY hovers near the 160.00 intervention threshold on Mideast tensions

USD/JPY struggles to find acceptance above 160.00 and retreats from a one-month high in the Asian session on Thursday amid fears that authorities will step in again to prop up the Japanese Yen. Furthermore, a new Israel-Lebanon ceasefire caps the US Dollar and supports the currency pair. However, renewed US-Iran tensions keep the downside limited in the Greenback and the pair.

Gold rebounds from one-week low as Israel-Lebanon truce pressures safe-haven USD

Gold gains some positive traction on Thursday and climbs to the $4,475 area during the Asian session, reversing a major part of the previous day's slide to a one-week low. The Israel-Lebanon truce prompts some profit-taking around the US Dollar and supports the commodity.

Ethereum: Long-term holders' capitulation drives ETH below $1,800

Ethereum has fallen below $1,800 on Wednesday, the first time since May 2025 following accelerated spot selling pressure and distributions from long-term holders. The Age Consumed metric, which tracks the movement of previously idle tokens or long-term holders' coins, spiked over the past two days as prices declined, indicating increased selling activity among this cohort.

Kevin Warsh takes the Fed helm: What it means for the US Dollar

The Federal Reserve moves away from the highly predictable "forward guidance" model of the Jerome Powell era to a new “Kevin Warsh environment”, characterized by less communication, more policy surprises, and an increased focus on the Fed's complex balance sheet.

Recession on paper: What really moves the Canadian Loonie now?

Statistics Canada handed the headline writers a gift and the analysts a headache. Real GDP shrank 0.1% on an annualized basis in the first quarter, and with the fourth quarter of 2025 revised down to a 1.0% contraction, that is two negative quarters in a row, the textbook definition of a technical recession and Canada's first since the pandemic.