Market Insights > Daily Market Analysis

23 May 2025,05:46

Daily Market Analysis

Yen Strengthens on Safe-Haven Demand Amid U.S. Fiscal Concerns and Geopolitical Tensions

23 May 2025, 05:46

Share on:

Key Takeaways:

*Japan’s CPI beat the market expectations, sparking BoJ Hawkish expectations.

*Market uncertainties arose after Trump’s tax bill passed in the House of Representatives.

Fundamental Analysis

The Japanese Yen extended its gains this week, underpinned by a resurgence in safe-haven flows as global uncertainties escalate. Investor sentiment turned risk-averse following the passage of President Donald Trump’s tax bill by the U.S. House of Representatives on May 22, 2025, which intensified concerns over Washington’s fiscal trajectory. With U.S. national debt ballooning to $36.2 trillion, doubts over the government’s long-term debt sustainability triggered a shift into safer assets, boosting demand for the Yen.

Geopolitical risks further supported the Yen. Discussions at the G7 summit centered on tightening sanctions against Russia, including a proposed reduction in the price cap on Russian oil. The potential for retaliatory actions and energy market instability added to the appeal of Japan’s currency as a haven.

Domestically, Japan’s core Consumer Price Index rose to 3.5% in April, fueling speculation that the Bank of Japan may lean toward policy tightening after years of ultra-accommodation. Expectations of a more hawkish BoJ provide a secondary tailwind for the Yen, enhancing its attractiveness even as global yields fluctuate.

While short-term volatility remains, the Yen appears poised for sustained strength amid ongoing macro and geopolitical headwinds. Investors are advised to remain vigilant and position accordingly as risk-off sentiment continues to drive capital flows.

Technical Analysis – Dollar Index

USDJPY, H4

The USDJPY pair has come under renewed selling pressure, sliding over 1% this week as bearish momentum continues to dominate. The move marks a notable shift in sentiment, with the pair now approaching a critical support level near the 142.00 mark. A potential technical rebound could occur if the pair finds a solid footing at that threshold.

Momentum indicators continue to flash bearish signals. The Relative Strength Index (RSI) remains subdued below the 50 level, while the MACD extends its decline further below the zero line—both underscoring persistent downside pressure.

Unless the pair decisively holds above the 142.00 support, further weakness cannot be ruled out. However, any signs of stabilization at this level may invite short-term dip-buying interest, offering temporary relief within the broader downtrend.

Resistance Levels: 146.00, 148.10

Support Levels: 141.90, 140.30

Начните торговать с преимуществами

Торгуйте валютными парами, индексами, Металлы и другими активами с минимальными в отрасли спредами и молниеносным исполнением.

Начните торговать с депозитами от $50 на наших стандартных счетах.
Получите доступ к круглосуточной поддержке.
Получите доступ к сотням инструментов, бесплатным образовательным ресурсам и одним из лучших рекламных акций.

Присоединяйся сейчас

Latest Posts

Gold Prices Climb as Debt Concerns and Geopolitical Risks Persist

Trump’s Tax Bill Passes in House of Representatives, Wall Street Under Pressures

Быстрое и простое открытие счета

Открыть реальный счет

1

Откройте счет

Открывайте реальный счет в PU Prime без особых усилий.
2

Пополните счет

Легко пополняйте счет с помощью широкого ассортимента операторов и валют.
3

Начните торговать

Получите доступ к сотням инструментов с лучшими торговыми условиями на рынке.

Открыть реальный счет

Risk Warning: Trading Contracts for Difference (CFDs) involves a high level of risk and may not be suitable for all traders. The use of leverage magnifies both potential profits and losses, meaning you could incur losses greater than your initial deposit. It is important to understand the risks involved and assess whether you can afford to lose your invested capital. When trading CFDs, you do not own the underlying assets and have no rights to them. Past performance is not indicative of future results. The information provided on this website is for general informational purposes only and does not constitute investment advice, recommendation, or solicitation to engage in any investment activities. It does not take into account your personal financial circumstances, investment objectives, or risk tolerance. Any interaction with this website is an individual and voluntary action on the part of the user. The content on this website should not be construed as an invitation to enter into or acquire PU Prime’s financial services and products. Under no circumstances shall the Company be held liable for any loss or damage, in whole or in part, arising from, or in connection with, any CFD trading activities. Please review the legal documents available on our website to ensure that you fully understand the risks associated with CFD trading. If necessary, seek independent advice from qualified professionals.

Regional Restrictions: This information on this website is not intended for distribution to, or use by, any person or entity who is a citizen or resident of certain jurisdictions, including, but not limited to, Singapore, the United States, China, and jurisdictions listed on the FATF “blacklist”, and the major global sanctions lists. It is also not intended for distribution or use in any jurisdiction where such distribution or use would violate local laws or regulations.

PU Prime is a trading name for multiple licensed entities operating across different jurisdictions, each authorised to provide specific financial services in accordance with local regulations. Upon registration, you will be assigned to the entity that corresponds with your location and complies with the applicable regulatory requirements. The entity you are registered with will govern your trading activities, which will be subject to the oversight and regulations of its respective regulatory authority. While these authorities have granted a securities or investment dealer license to the respective entity, they do not endorse the products offered.

PU Prime Limited is securities dealer authorised and regulated by the Financial Services Authority of Seychelles under License No. SD050, with its registered address at CT House, Office 9A, Providence, Mahe, Seychelles.

PU Prime Ltd is an investment dealer authorised and regulated by the Financial Services Commission of Mauritius under License No. GB23202672, with registered address at Suite 201 Level 2, The Catalyst, Cybercity Ebene, Mauritius.

PU Prime (Pty) Ltd is a financial service provider authorised and regulated by the Financial Sector Conduct Authority of South Africa under FSP No. 52218, with registered address at 37 Harley Street, Ferndale, Randburg, Gauteng 2194, South Africa.

PU Prime Trading Pty Ltd is an Australian financial services licensee authorised and regulated by the Australian Securities and Investments Commission of Australia under License No. 410681, with its registered address at Suite 103, Level 1, 17 Castlereagh St, Sydney, NSW 2000, Australia. For Australian clients who have onboarded through https://www.puprime.au, the product issuer is PU Prime Trading Pty Ltd.

Finzero Cap Ltd. is registered in the Republic of Cyprus under registration number HE414308. Its registered office is located at Archiepiskopou Makariou III, 160-1st floor, 3026, Limassol, Cyprus.

We and third parties use cookies to enhance your user experience. For more information, see our Cookie Policy and Privacy Policy. By clicking "Accept", you agree to the use of cookies.