JPY Weakens Amid Trade Uncertainty, Eyes on Upcoming CPI Ahead of BoJ Meeting

JPY Weakens Amid Trade Uncertainty, Eyes on Upcoming CPI Ahead of BoJ Meeting

Published: July 11, 2025
Category: Forex | Japan Economy | Central Banks

Japanese Yen Slips on Trade Policy Uncertainty

The Japanese Yen (JPY) declined by 0.4% against the US Dollar (USD) amid ongoing uncertainty surrounding global trade policies. Despite stable yield spreads that typically support the yen, market sentiment remains cautious.

Focus on Next Week’s CPI Data

Investors are closely watching the release calendar, particularly the Consumer Price Index (CPI) scheduled for next Friday. This data is critical for Bank of Japan (BoJ) policymakers, as it will heavily influence their deliberations at the upcoming July 31 meeting.

BoJ Policy Outlook

While a policy hold is widely expected, recent remarks hint at possible significant revisions to the BoJ’s inflation projections. Technical levels for USD/JPY indicate neutral near-term momentum with support at 142.50 and resistance above 148.00.

Key Points to Monitor:

• July 18 CPI release and inflation trends
• BoJ’s stance on monetary easing or tightening
• Impact of trade developments on JPY sentiment
• Technical support and resistance for USD/JPY

Related Articles on Tredu.com:

• Bank of Japan’s July Meeting Preview
• USD/JPY Technical Analysis: Key Levels to Watch
• Global Trade Policies Impact on Forex Markets