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.

RoboForex Market Analysis & Forex Forecasts

Attention!
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 Wednesday at 11:26 AM by RBFX Support

[RBFX Support]

Gold (XAUUSD) at weekly low as market bets on good news

Gold (XAUUSD) has dropped to 3,275 USD as demand for safe-haven assets fades. The market is awaiting the announcement of a potential deal between China and the US. Find out more in our analysis for 12 May 2025.

XAUUSD forecast: key trading points

• Gold (XAUUSD) prices decline amid expectations of progress in China-US trade talks
• The market anticipates official statements on the issue as early as Monday
• XAUUSD forecast for 12 May 2025: 3,258 and 3,223

Fundamental analysis

Gold (XAUUSD) prices fell to 3,275 USD on Monday, marking their lowest level in a week, a roughly 1% drop from Friday. The decline is driven by expectations, with the market awaiting an official announcement on progress in China-US trade negotiations early this week. Rumours suggest that productive developments are underway, and confirmation could arrive today.

Against this backdrop, investor appetite for safe-haven assets has diminished. Market participants are clearly pricing in a favourable outcome. Although little concrete information has been released, Chinese officials have indicated readiness for formal talks, and Washington has suggested that conditions for progress are in place. In any case, this will be known today.

Gold also came under pressure last week following comments from the US Federal Reserve. Speaking after the recent meeting, Fed Chairman Jerome Powell noted that there are no current plans for pre-emptive interest rate cuts.

RoboForex Market Analysis & Forex Forecasts

Attention!
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 9 hours ago by RBFX Support