USD/JPY Technical Analysis April 4, 2025
Current Price Levels and Technical Indicators:
As of 7:00 GMT on April 4, 2025, the USD/JPY pair is trading at approximately 145.9350.
Relative Strength Index (RSI): The 14-day RSI is at 30%, approaching the oversold threshold, indicating potential bearish momentum.
Moving Averages:
The pair is trading below the 20-day Simple Moving Average (SMA), suggesting a short-term bearish trend.
It is also below the 50-day and 100-day SMAs, reinforcing the bearish outlook.
Support and Resistance Levels:
Support Levels:
Immediate support is observed at 145.5320.
Further support is noted at 145.1200.
Resistance Levels:
Immediate resistance is at 146.0100.
A higher resistance level is identified at 146.4000.
Fundamental Factors:
The recent depreciation of the USD/JPY pair is primarily attributed to the announcement of significant tariffs by U.S. President Donald Trump. These tariffs include a 24% levy specifically targeting Japanese imports, effective April 9, 2025. This development has heightened investor concerns over potential trade tensions and their impact on global economic stability.
In response to these tariffs, the Japanese yen has strengthened against the U.S. dollar, as investors seek safe-haven assets amid escalating trade uncertainties. Additionally, the Bank of Japan may reconsider the timing of its planned interest rate hikes, given the potential economic implications of the tariffs.
Conclusion:
The USD/JPY pair is currently exhibiting bearish momentum, influenced by recent geopolitical developments and market reactions to U.S. tariff announcements. Traders should closely monitor ongoing trade negotiations and central bank communications, as these factors are likely to significantly impact the pair’s trajectory in the near term.
EUR/USD Technical Analysis April 4, 2025