View more search results

Zarejestruj się

Market Insights > Daily Market Analysis

17 June 2025,07:14

Daily Market Analysis

Japanese Yen Drifts Lower Ahead of BoJ Policy Decision

17 June 2025, 07:14

Share on:

Key Takeaways:

*The Japanese Yen eased in strength ahead of the BoJ interest rate decision.

*Yen traders may have eyes on the development of the Middle East tension to gauge the Yen’s strength.

Market Summary:

The Japanese yen continued to edge lower as markets look ahead to the Bank of Japan’s interest rate decision, with policymakers widely expected to maintain their current policy stance. The BoJ’s cautious posture is shaped by persistent global uncertainties—ranging from renewed U.S. tariff threats under former President Trump to escalating tensions in the Middle East.

Years of ultra-loose monetary policy have left global financial markets heavily reliant on Japanese liquidity, and any abrupt tightening could risk destabilizing capital flows. Domestically, tepid earnings growth and a lack of compelling inflationary pressure further justify the BoJ’s measured approach.

In the short term, this policy inertia may keep the yen under pressure. However, should geopolitical risks intensify—particularly in the Middle East—the yen could see renewed demand as investors pivot to traditional safe-haven assets.

The yen’s direction remains highly sensitive to geopolitical developments and BoJ signals. A dovish hold is likely priced in, but an unexpected hawkish tilt or a flare-up in global risk aversion could alter the currency’s trajectory swiftly.

Technical Analysis

EURJPY, D1

The EURJPY pair surged nearly 2% after decisively breaking above its key range-bound resistance at the 164.80 level, signaling a strong bullish bias. The breakout propelled the pair to its highest level since August, with momentum now targeting the next key resistance at 168.75.

Despite the bullish trajectory, the pace of the recent rally raises the likelihood of a near-term technical retracement. The Relative Strength Index (RSI) has entered overbought territory, while the MACD remains firmly above the zero line and is diverging higher—both pointing to strengthening bullish momentum, but also flashing potential for short-term exhaustion.

While the broader trend remains constructive, traders may watch for consolidation or pullbacks before the pair attempts to clear the next resistance threshold. A sustained break above 168.75 would likely reinforce the bullish trend, while failure to hold gains could open the door to a corrective phase.

Resistance Levels: 168.75, 172.70
Support Levels: 164.66, 161.20

Start trading with an edge today

Trade forex, indices, metal, and more at industry-low spreads and lightning-fast execution.

Start trading with deposits as low as $50 on our standard accounts.
Get access to 24/7 support.
Access hundreds of instruments, free educational tools, and some of the best promotions around.

Join Now

Latest Posts

Nasdaq Rallies as Geopolitical Tensions Ease, Eyes on U.S. Retail Sales

Szybkie i łatwe otwieranie konta

Utwórz Konto na Żywo

1

Zarejestruj się

Zarejestruj się na Live Account w PU Prime za pomocą naszego procesu bez żadnych kłopotów.
2

Fundusz

Bez wysiłku doładuj swoje konto za pomocą szerokiego zakresu kanałów i akceptowanych walut.
3

Rozpocznij Trading

Uzyskaj dostęp do setek instrumentów w ramach wiodących na rynku warunków handlu

Utwórz Konto na Żywo

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.