{"id":22690,"date":"2025-05-20T07:01:02","date_gmt":"2025-05-20T07:01:02","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=22690"},"modified":"2025-05-20T07:01:02","modified_gmt":"2025-05-20T07:01:02","slug":"yen-on-the-ropes-as-usd-jpy-slips-below-key-level","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/yen-on-the-ropes-as-usd-jpy-slips-below-key-level\/","title":{"rendered":"Yen on the Ropes as USD\/JPY Slips Below Key Level"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.global-vtrader.com\/en\/wp-content\/uploads\/sites\/4\/2025\/05\/yen10-1024x559.png\" alt=\"\" class=\"wp-image-17048\" \/><\/figure>\n\n\n\n<p><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>USD\/JPY dips to \u00a5144.30, eyeing a sixth straight daily decline.<\/li>\n\n\n\n<li>Japan&#8217;s GDP contracts 0.2% in Q1, driven by a 0.6% drop in exports.<\/li>\n\n\n\n<li>BoJ signals willingness to hike again, but cautious over inflation\u2019s impact on households.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>The Japanese yen continued its slide on Monday, with USD\/JPY breaking decisively below the psychologically key \u00a5145 level, settling near \u00a5144.50 after touching a low of \u00a5144.30. The decline marks the sixth consecutive down session for the pair, underscoring a significant momentum shift favouring the U.S. dollar \u2014 despite signs of slowing in the broader global macro outlook.<\/p>\n\n\n\n<p>Japan\u2019s economic data this week only <a href=\"https:\/\/www.reuters.com\/business\/japans-economy-shrinks-us-tariff-hit-looms-2025-05-16\/\">added to bearish pressure on the yen<\/a>. GDP contracted 0.2% in Q1, missing expectations of a 0.1% drop. Exports were the main drag, down 0.6%, as US tariffs continue to cloud trade outlooks. While domestic demand rose 0.6%, it wasn\u2019t enough to offset the export slump.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Japan\u2019s Finance Minister said he\u2019s arranging a bilateral meeting with US Treasury Secretary Scott Bessent this week to discuss topics including currency matters, triggering further gains in the yen <a href=\"https:\/\/t.co\/PdelUwN487\">https:\/\/t.co\/PdelUwN487<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1924670066164953581?ref_src=twsrc%5Etfw\">May 20, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Meanwhile, Bank of Japan Deputy Governor Shinichi Uchida added a twist, signalling that the central bank is <a href=\"https:\/\/www.reuters.com\/business\/boj-keep-raising-rates-if-inflation-track-hit-2-deputy-governor-says-2025-05-19\/\">open to further rate hikes<\/a> if the economy rebounds from recent shocks. \u201cIf our forecast materializes, we will continue to raise our policy rate,\u201d Uchida told lawmakers. But he also acknowledged that inflation \u2014 currently hovering around the BoJ\u2019s 2% target \u2014 is pressuring households and dampening consumer sentiment.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>The USDJPY pair has slipped into a consolidation-to-downtrend pattern following a recent high of <strong>145.511<\/strong>, closing the session at <strong>144.504<\/strong>. The 15-minute chart reveals a clear downward shift, with price action now trading below all key short-term moving averages (5, 10, and 30). The slope of the 30-MA has turned downward, confirming bearish pressure in the near term. The MACD histogram shows sustained red bars and a bearish crossover, suggesting momentum is still tilted lower.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.global-vtrader.com\/en\/wp-content\/uploads\/sites\/4\/2025\/05\/image-20-1024x445.jpg\" alt=\"\" class=\"wp-image-22691\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: USDJPY weakens below 145.00 as bears reclaim momentum; key support eyed near 144.30, as seen on the <\/em><em><a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a><\/em><\/p>\n\n\n\n<p>Attempts at recovery on 20 May were quickly faded, and the pair has struggled to sustain any upward movement since the late 19 May rebound. Support is forming around <strong>144.30<\/strong>, with immediate resistance around <strong>144.80\u2013145.00<\/strong>. A break below support could open the door to further declines, while bulls need a close above the 30-MA to regain control.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Cautious Forecast<\/h2>\n\n\n\n<p>For now, the dollar remains bid as traders rotate out of safe havens and shrug off the <a href=\"https:\/\/www.cnbc.com\/2025\/05\/19\/us-treasury-yields-moodys-downgrades-us-credit-rating.html\">recent Moody\u2019s downgrade of US debt<\/a>. If this broader dollar strength holds, the yen may stay under pressure soon, especially without the BoJ&#8217;s surprise.<\/p>\n\n\n\n<p>A sustained break below \u00a5144 could open a path toward \u00a5140, while any rebound faces resistance near \u00a5145.50. With Tuesday expected to be light on macro news, technical trading may dominate, making this an ideal window for chart-watchers and swing traders to test the pair\u2019s resolve.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a><\/strong><strong> and <\/strong><strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login?_gl=1*1azgbap*_gcl_au*NjE5NTE3MjY4LjE3NDQ2MDA3NDI.*_ga*MTY4OTgwNTU5Mi4xNzM2NzQ2MTgy*_ga_J26NL1ZVX7*czE3NDQ5NDQ0NTYkbzEyMCRnMCR0MTc0NDk0NDQ1NiRqNjAkbDAkaDA.\">start trading<\/a><\/strong><strong> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Strong dollar momentum and weaker Japanese exports weigh on yen; traders eye \u00a5145 level and policy shifts ahead. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":2,"featured_media":17048,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[12,30],"class_list":["post-22690","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-forex","tag-yen"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/22690","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=22690"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/22690\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media\/17048"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=22690"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=22690"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=22690"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}