USDJPY: BUY 147.80, SL 146.70, TP 148.50 | 12 August 2025

USDJPY:

The Japanese yen (JPY) is starting the new week on a modest note amid relatively low liquidity due to the Mountain Day holiday in Japan. Traders seem reluctant to make aggressive bets on the direction of the exchange rate amid mixed signals from the Bank of Japan (BoJ) about raising rates. Amid concerns about the potential negative impact of US tariff hikes, uncertainty in domestic politics suggests that the BoJ's rate hike prospects may be further delayed. However, the central bank revised its inflation forecast at the end of its July meeting last week and reiterated that it would continue to raise interest rates if growth and inflation continued to develop in line with its assessments.

Exclusive for our readers – a 202% bonus on deposits of $202 or more! Give the promo code PROFIT202 to customer support and start trading with TRIPLED capital. Full promo details are available via the link.

This indicates a significant divergence from the expectations of the Federal Reserve (Fed), which limited the modest rise of the US dollar (USD) on Friday from a two-week low and should provide support for the lower-yielding Japanese yen. This is keeping the USD/JPY pair below the 147.75-147.80 level during Monday's Asian session. Going forward, the market's attention will shift to the release of the latest US inflation data — the Consumer Price Index (CPI) on Tuesday and the Producer Price Index (PPI) on Thursday. In addition, preliminary data on Japan's GDP for the second quarter, which will also be released on Thursday, will play a key role in providing significant momentum for the currency pair.

Trade recommendation: BUY 147.80, SL 146.70, TP 148.50

FreshForex offers a wonderful 300% bonus on every deposit of $100 or more, giving you the opportunity to increase your trading volumes!