• The USD/JPY outlook indicates increased demand for the safe-haven yen.

• Market participants dumped risky assets in the panic that followed Trump’s new tariffs.

• The US will release its crucial nonfarm payroll report.

The USD/JPY outlook indicates increased demand for the safe-haven yen amid escalating fears of the impact of Trump’s tariffs on the global economy. Meanwhile, market participants are looking forward to the nonfarm payrolls report for clues on Fed policy. 

–Are you interested in learning more about making money with forex? Check our detailed guide-

The yen strengthened as market participants dumped risky assets in the panic that followed Trump’s new tariffs. The US president implemented tariffs on Canada, Mexico, and China. Furthermore, he promised a reciprocal tariff starting in April that will affect more countries. These policy changes ignited trade wars that have dimmed the outlook for the global economy. The US economy is also under threat since many companies depend on imports and exports. A decline in trade will, therefore, leave them in the dark. 

Furthermore, the yen remained strong due to the recent rise in BoJ rate hike expectations. Higher inflation in Japan has convinced speculators that the Bank of Japan will implement more rate hikes. Therefore, traders are bullish on the yen. 

Meanwhile, the US will release its crucial nonfarm payroll report, showing the state of employment. Soft data will raise Fed rate cut bets, further hurting the greenback. On the other hand, a rebound in employment would allow the dollar to recover. 

USD/JPY Forecast:

• US average hourly earnings m/m
• US nonfarm employment change
• US unemployment rate
• Fed Chair Powell Speaks

USD/JPY technical outlook: Downtrend nears the 147.00 key level

On the technical side, the USD/JPY price is nearing the 147.00 support level, a new low in the downtrend. The price trades far below the 30-SMA, showing bears are in the lead. At the same time, the RSI trades below 50, indicating solid bearish momentum. 

–Are you interested in learning more about MT5 brokers? Check our detailed guide-

USD/JPY has maintained its downtrend, making lower highs and lows. However, bulls have also tried several times to take control by breaking above the 30-SMA. Still, the price has reached fresh lows. If this momentum continues, bears will break below the 147.00 key level to make new lows. 

However, before the break, the price might pause or pull back to retest the 30-SMA. The bearish bias will remain strong as long as the price stays below the 30-SMA with the RSI under 50. 

Looking to trade forex now? Invest at eToro!

68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Created on March 07, 2025

• The British pound has been noisy during the trading session on Thursday, as we are hanging around the crucial 1.29 level.
• This is a market that has been overdone for a while, so would not surprise me at all to see a little bit of a pullback.
• That being said, it doesn’t necessarily mean that I expect this pair to collapse or anything, but the move has been a little bit in the ridiculous genre, and I think that sooner or later we are going to have to realize that gravity is most certainly a thing.

The candlestick on Thursday shows that we are hesitating a bit, and this sets up the perfect situation for a bit of a pullback. The pullback is something that should be expected after a complete explosion to the upside like we had seen. The 1.2750 level is an area that I’d be paying close attention to, as it has been important multiple times. Just below there, we also have the 200 Day EMA offering support.

” dir=”auto” id=”content-1686574122635″>

Technical Analysis

The technical analysis for this pair is very bullish all of the sudden, but in the short term you would have to assume that there is a little bit of hesitation to start jumping in and buying at this level. That being said, if we were to pull back toward the crucial 1.2750 level, then I think we have the opportunity to buy in that area. On the other hand, if we were to break above the top of the candlestick for the trading session on Thursday, then it’s possible that we could go looking to the 1.30 level.

In general, I think this is going to remain a somewhat bullish market, due to the fact that everybody is watching US yields dropped, but at the same time, it’s a scenario where sooner or later gravity has to take some of the momentum out. Because of this, it does make a certain amount of sense that we would see a little bit of a reprieve. However, if you are patient, we should see things show themselves a little bit clearer.

Ready to trade our daily Forex GBP/USD analysis? We’ve made this UK forex brokers list for you to check out

The GBPJPY pair failed to surpass the MA55 that formed solid barrier by settling at 192.60, to form strong negative rebound and approach the initial support at 189.75.

The suggested scenario on the near-term basis depends on the strength of the current support line, as its stability allows us to expect renewing the bullish attempts in order to reach 191.00 followed by reaching the next target at 193.25, while crawling below the support and providing negative close below it will push it back to the negative track, to suffer many losses by moving towards 188.65.

The expected trading range for today is between 189.75 and 191.00

Trend forecast: Bullish

The EURJPY pair approached the second target at 161.65, while the negative momentum that the major indicators started to provide by the MA55 that forms additional barrier at 160.90 and stochastic attempt to exit the overbought areas pushed the price to activate the correctional decline to settle near 159.50.

We expect to form some sideways trades to attempt to hold above the additional support at 158.85, while gathering the additional positive momentum will push the price to start forming bullish waves to target 160.20 soon, followed by attempting to confirm breaching the MA55 to ease the mission of recording new gains on the near-term and medium term basis.

The expected trading range for today is between 159.00 and 161.20

Trend forecast: Bullish

Despite forming mixed trades by settling near 0.6160 recently, the frequent negative stability of the CADCHF price below 0.6340 and forming additional barrier at 0.6200 level support the continuation of the negativity for the near-term and medium-term period.

We expect to gather the negative momentum soon to start forming strong negative waves and attack 0.6085 level, while surpassing it will open the way to target new negative stations that might start at 0.6000 and 0.5930 levels.

The expected trading range for today is between 0.6085 and 0.6200

Trend forecast: Bearish

Solana’s currency price (SOLUSDT) edged higher in the intraday levels while trying to recoup some recent losses, amid the dominance of the downward short-term trend, with negative pressure from trading below the 50-day SMA, while a negative divergence formed in the RSI after reaching overbought levels compared to the price’s movements. 

Therefore we expect more losses for the price, targeting the pivotal support of $116.00, provided the resistance of $187.40 holds on.

Trend forecast for today: Bearish 

Solana’s currency price (SOLUSDT) edged higher in the intraday levels while trying to recoup some recent losses, amid the dominance of the downward short-term trend, with negative pressure from trading below the 50-day SMA, while a negative divergence formed in the RSI after reaching overbought levels compared to the price’s movements. 

Therefore we expect more losses for the price, targeting the pivotal support of $116.00, provided the resistance of $187.40 holds on.

Trend forecast for today: Bearish 

Created on March 06, 2025

• Strong signals from the Bank of Japan regarding future interest rate hikes, coupled with the US dollar’s decline against other major currencies following the official approval of US tariffs, helped bears push the USD/JPY currency pair towards the support level of 148.40 before stabilizing around 148.90 at the time of writing the analysis.
• The currency pair has given up its gains from the start of the week, which reached the resistance level of 151.30.
• Furthermore, the USD/JPY pair may continue to decline until the reaction to the announcement of US job numbers at the end of the week.

Bank of Japan Policies Support Strong Yen Gains

There is no doubt that, according to currency market trading on licensed Forex trading companies’ platforms, the Japanese Yen’s gains have increased to their highest in five months amidst hawkish comments from a senior Bank of Japan official. Bank of Japan Deputy Governor Shinichi Uchida stated that the central bank would raise interest rates further if its economic forecasts are met, emphasizing that the exit from the intensive monetary easing program has not just begun. The official also stressed that monetary conditions remain very accommodative, noting that the Bank of Japan’s reduction of Japanese government bond holdings has been limited.

Meanwhile, the latest data showed that Japan’s services sector grew at its fastest pace in six months in February, driven by strong demand.

Globally, the Japanese yen was pressured by growing trade concerns after new U.S. tariffs on Canada, Mexico and China took effect this week, prompting retaliatory measures from those countries.

Trading Tips:

Watch the dollar decline against the Japanese yen to seize new buying opportunities, but always remember not to take risks.

A look at the policies of the Japanese central bank

At its latest meeting, the Bank of Japan raised its key short-term interest rate by 25 basis points to 0.5%, the highest level in 17 years, in line with market consensus. This move reflects the momentum of wage increases and steady progress in inflation. It also represents the third-interest rate hike since the Japanese central bank ended negative interest rates in March 2024. The central bank also indicated plans for further price increases and scaling back monetary support if economic data and prices match its expectations.

Friday’s decision was passed by a majority of 8-1, with board member Nakamura dissenting. At the same time, in its quarterly forecast, the Bank of Japan raised its core inflation forecast to 2.7% for fiscal 2024 from October’s estimate of 2.5%, citing a growing labour shortage. Moreover, the Bank of Japan also expected core inflation to decline to 2.4% in fiscal 2025 and 2.0% in fiscal 2026.

At the same time, the central bank lowered its GDP growth forecast for 2024 slightly to 0.5% from the previous figure of 0.6%. Growth forecasts remain at 1.1% for fiscal 2025 and 1.0% for fiscal 2026.

USD/JPY Technical Analysis and Expectations Today:

According to trading via the daily chart, the general downward trend for the USD/JPY pair is getting stronger and breaking the support of 148.00 may be possible. If this happens, the technical indicators may start giving strong oversold signals from the Relative Strength Index and the MACD indicator. Currently, the closest support levels for the currency pair are 148.00, 147.20 and 146.00, respectively. We still prefer to buy the dollar against the Japanese yen, but without risk and dividing the trading volume on separate support levels. On the other hand, and for the same time period, the resistance of 152.50 will remain the most important to break the current bearish outlook for the currency pair.

Want to trade our USD/JPY forex analysis and predictions? Here’s a list of forex brokers in Japan to check out.

The GBPCHF price formed strong bullish rally yesterday, taking advantage of the frequent consolidation within the minor bullish channel, to notice surpassing 1.1420 barrier and approaching 1.1510 resistance line.

Note that stochastic crawl towards the overbought areas will reinforce the chances of gathering the additional positive momentum to ease the mission of breaching the current resistance and start targeting new positive stations, starting as a 1.1545 level.

The expected trading range for today is between 1.1450 and 1.1545

Trend forecast: Bullish

Created on March 06, 2025

• The weakness of the US dollar immediately after the official announcement of US tariffs on global economies, coupled with investors’ relatively increased risk appetite, helped bulls push the GBP/USD pair towards the resistance level of 1.2900.
• This is the pair’s highest in four months, and it is stabilizing around its gains at the start of today’s Thursday trading.

Interest Rate Bets and Britain’s Avoidance of US Tariffs Helped Bulls

According to Forex market trading and reliable trading companies’ platforms, the British Pound benefited significantly from expectations that interest rates in Britain will remain higher for longer, with traders reducing their bets on interest rate cuts by the Bank of England to 52 basis points for 2025. Bank of England Deputy Governor Ramsden warned that persistent wage pressures could keep inflation high but suggested that future interest rate cuts could accelerate if needed.

Additionally, the Pound is seen as less exposed to US tariffs, especially after US President Trump suggested a potential trade deal with Britain that could avoid new tariffs. At the same time, Germany announced a significant increase in defence and infrastructure spending, while Britain has already outlined its plans to increase defence spending and cover it with cuts in development budgets.

Trading Tips:

As we expected before, the improvement in investor and market sentiment will support further gains for the British pound, and now you should be careful not to renew the selling operations to take profits.

Trump’s Tariffs Weaken the US Dollar

According to Forex market trading, the US dollar’s decline after the confirmation of tariffs on Canada and Mexico perplexed traders and analysts alike. In general, the dollar’s weakness reflects expectations that tariffs pose a significant obstacle to US economic growth and at the same time raise inflation. In short, it’s stagflation. Commenting on recent trading, Morgan Stanley analysts say that this breakout is very important because it opens the door to broader US dollar weakness. After recent gains, the GBP/USD pair rose to recover the 50% Fibonacci retracement of the major decline that occurred from October 2024 to January 2025.

On another note, the slowdown in US economic data has become clear, prompting financial markets to bet on further US interest rate cuts by the Federal Reserve. Money markets show that investors are pricing in 75 basis points of cuts by the December meeting. That would mean three 25 basis point cuts, higher than the single cut expected in early February. This is weighing on US bond yields, which in turn is weighing on the US dollar.

Rise in British Treasury Bond Yields

According to recent trading, the yield on the 10-year British treasury bond rose 11 basis points to 4.613%, following a rise in European bond yields after Germany announced a historic fiscal shift to boost spending on defence and infrastructure. The move signals increased borrowing across Europe, weighing on UK revenues as the government also plans to increase defence spending, funded by cuts in other areas.

At the same time, expectations of a Bank of England rate cut have dimmed, with markets now pricing in just 52 basis points of cuts for 2025. BoE Deputy Governor Ramsden warned that persistent wage pressures could keep inflation high, but also suggested that future rate cuts could accelerate if economic conditions worsen.

Technical Analysis for the GBP/USD pair today:

According to the performance on the daily chart, bulls’ control over the GBP/USD pair is getting stronger and a move towards the psychological resistance of 1.3000 will be the strongest confirmation of the upward shift. At the same time, technical indicators will move towards strong overbought levels led by the movement of the RSI and MACD indicators. In contrast, and over the same time frame, the support level of 1.2630 will remain a threat to the current upward shift. Finally, we expect GBP/USD to remain on its upward trajectory until the reaction to the US jobs numbers which may affect market expectations for future US central bank policy.

Ready to trade our daily GBP/USD Forex forecast? Here’s some of the best forex broker UK reviews to check out