The Japanese yen remains on the right track to record solid weekly gains against the USD; Bulls not ready to abandon

• The Japanese yen attracts fresh buyers while a warmer CPI print reaffirms the rated hiking bets.
• The hopes of a trade agreement at the beginning of Japan and a weaker USD weigh more on the USD / JPY.
• The fundamental backdrop of the bullish JPY supports the prospects for deeper losses for the pair.

The Japanese yen (JPY) retains a bias bruise against a lower US dollar (USD) until the start of the European session on Friday and remains close to a two -week summit the day before. The inflation figures for warmer consumers in Japan that consumers have reaffirmed that the Bank of Japan (BOJ) will continue to increase interest rates. This marks a great divergence compared to the expectations that the Federal Reserve (Fed) will further reduce loan costs in 2025, which maintains the USD bulls on the defensive and benefits the low -yield JPY.

Meanwhile, US-Japanese trade negotiations seem to progress while civil servants continue to meet regularly. In fact, Ryosei Akazawa, Japan tariff negotiator, intends to visit the United States to the United States for another series of discussions with the Trump administration. This raises hopes for an early commercial problem, which, in turn, gives an additional boost to the JPY and contributes to the intraday slide of the USD / JPY pair below the middle of 143.00. In addition, the fundamental backdrop suggests that the slightest resistance way for JPY remains upwards and supports the prospects for an extension of the recent downward trajectory of the currency pair that has been observed in the past two weeks.

The Japanese yen retains bullies in the midst of the expectations of Boj Best,

• The data published by Japan Statistics Bureau on Friday showed that the National Consumer Price Index (IPC) increased by 3.6% in annual sliding in April. More details have revealed that the basic national IPC, which excludes the volatile prices of fresh food, reached 3.5% in annual sliding in April against 3.2% before and 3.4% expected.
• In addition, a gauge that excludes both fresh food prices and energy, and is closely monitored by the Bank of Japan, reaching the rate of 3% in annual sliding of 2.9%. Adding to this, the expectations that wages increase will increase prices should maintain the pressure on the BOJ to continue to increase interest rates.
• In fact, BOJ officials have recently shown a desire to further increase interest rates if the economy and prices improve as expected. On the other hand, traders have increased their bets for new interest rate drops by the federal reserve after the Soft US Consumer price index (ICC) from last week and the Prix Producers (PPI).
• The “One Big Beau Bill” of American president Donald Trump was adopted Thursday by the House of Representatives and went to the Senate for approval. If it erases this obstacle and becomes law, the reduction of tax for tax reduction and the expenditure bill could aggravate the US budget deficit at a faster than expected pace.
• On Wednesday, the Chinese Ministry of Commerce warned of legal action against individuals or organizations on Wednesday, implementing US export restrictions on Huawei AI processors. This highlights persistent tensions between the two largest economies in the world despite a preliminary trade agreement concluded in Geneva at the beginning of the month.
• Meanwhile, the impasse revives fears of an economic slowdown in the United States, which, in turn, manages to help the US dollar building Thursday gains led by American macroelectric data. The United States Ministry of Labor (Dol) said that the first unemployment complaints fell to 227K last week, pointing to a still resilient labor market.
• Adding to this, a preliminary report published by S&P Global has shown that the American composite PMI output index increased to 52.1 in May from 50.6 in the previous month. The PMI services increased to 52.3, against 50.8 of April, reaching a two -month summit, while the PMI manufacturer arrived at 52.3.
• On the geopolitical front, the Israeli soldiers continued to beat the Gaza strip and desperately block food aid. Adding to that, Trump would have told European leaders that Russian President Vladimir Putin was not ready to end the war thinking that he wins, which should also underlie the security jpy.
• The American economic file on Friday presents the publication of data on house sales, although the emphasis will be placed on speeches by influential members of the FOMC, which will stimulate the USD request and the USD / JPY pair. Nevertheless, the fundamental backdrop suggests that the track of the slightest resistance to cash prices is down.

USD / JPY is consolidated almost 61.8% FIBO. Level of trace before the next leg

The failure of one night near the stop point of the support of 144.40 confluence, including the level of retirement of 50% of the April-May rally and the simple mobile average of 200 periods (SMA) over 4 hours chartand the following slide, promotes lowering traders. This, with negative oscillators on time / daily graphics, validates the short -term negative perspectives for the USD / JPY pair.

From the current levels, zone 143.25, or the level of Fibonacci retracement of 61.8%, could offer some support before the figure of 143.00. This is followed by region 142.80, or more than one lower by two weeks affected on Thursday, below which the USD / JPY pair could speed up the fall to the next relevant support near the area 142.40-142.35 before switching to the 142.00.

On the other hand, a resistance supported beyond the resistance to the confluence of 144.35-144.40 USD / JPY pair to the psychological mark of 145.00. This is followed by the Hurdle 145.35-145.40, or the FIBO of 38.2%. Level of retrace, which, if it is decisively erased, could move the short -term bias in favor of bullish merchants.