Japanese Yen Strengthens Further; USD/JPY Drops Below 144.00 on USD Weakness

Japanese Yen Appreciates Sharply as USD/JPY Drops Below 144.00

The Japanese Yen (JPY) continued its rally in the early European session on Thursday, driving the USD/JPY pair below 144.00, marking a fresh weekly low. The strengthening Yen reflects growing safe-haven demand amid escalating geopolitical tensions and global trade uncertainty.

US Dollar Weakness and Fed Dovishness Fuel Yen Demand

The US Dollar (USD) remains under pressure following softer-than-expected inflation data, fueling expectations that the Federal Reserve will cut interest rates in the coming months. In contrast, hawkish signals from the Bank of Japan (BoJ) continue to support the JPY, creating a policy divergence that adds pressure on USD/JPY.

Safe-Haven Inflows Amid Global Tensions

Investors are flocking to the Yen as a safe-haven asset, following renewed Middle East unrest and President Donald Trump’s hints at potential new trade tariffs. These developments are increasing market risk aversion, bolstering the Yen’s appeal.

Key Levels and Market Focus

• USD/JPY support: 143.80 and 143.30
• USD/JPY resistance: 144.50 and 145.00
• Technical bias: Bearish below the 144.00 handle
• RSI (14-day): Points to extended downside potential

Markets now await the release of the US Producer Price Index (PPI) later today, which could provide short-term direction for USD-based pairs.

Related Reads on Tredu:

• BoJ Monetary Policy Outlook 2025
• US Inflation and Fed Expectations
• Geopolitical Risks Boost Safe-Haven Assets