Market Fundamental Analysis by RoboForex

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Wedge pattern on USDJPY chart – sellers gear up for downward move

The USDJPY rate is currently undergoing a correction but remains under pressure, with the price now at 142.99. Find more details in our analysis for 7 May 2025.

USDJPY forecast: key trading points

• Japan’s services PMI for April was revised upwards from 52.2 to 52.4
• New orders in the service sector reached the highest level in nearly a year, indicating strong domestic demand in Tokyo
• USDJPY forecast for 7 May 2025: 141.45

Fundamental analysis

The USDJPY rate is recovering after declining for three consecutive trading sessions, as investors continue to monitor trade negotiations between the US and Japan. Tokyo authorities aim to finalise a bilateral agreement by June, supporting interest in risk assets and currency markets.

Last week, the Bank of Japan kept its interest rate unchanged at 0.5% as expected. However, the central bank downgraded its forecasts for economic growth and inflation, reinforcing market expectations that further monetary tightening is unlikely in the near term.

Meanwhile, Japan’s services PMI for April 2025 was revised upwards to 52.4 from a preliminary 52.2, marking the fastest pace of new order growth in nearly a year and indicating steady domestic demand. These figures could push the USDJPY pair lower as part of today’s forecast.

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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

Edited 14 hours ago by RBFX Support