USDJPY rebounds from support – correction or start of a reversal?
The USDJPY rate is recovering, although the US dollar remains under pressure, with the price currently at 142.64. Discover more in our analysis for 27 May 2025.
USDJPY forecast: key trading points
Japan’s inflation accelerated to 3.5%, the highest level in two years
Rising inflation increases the likelihood of a BoJ rate hike
USDJPY forecast for 27 May 2025: 144.95
Fundamental analysis
The USDJPY rate is correcting after rebounding from the key support level at 142.25. The US dollar remains under pressure as investors adjust their expectations for the Bank of Japan’s next moves, pricing in another rate hike amid steady inflation. According to last week’s data, Japan’s core inflation unexpectedly accelerated to 3.5%, its highest in two years, strengthening the case for further monetary policy tightening.
Meanwhile, Tokyo’s unemployment rate rose to 2.5% in March from 2.4% in February, while employment showed a slight decline. Japan’s Leading Economic Index, which signals short-term economic prospects, was revised up to 108.1 from 107.7 but remains at its lowest since December due to weak consumer sentiment. The Coincident Index, tracking current economic activity including industrial production, fell to 115.9, the lowest reading since November.
RoboForex Market Analysis & Forex Forecasts
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
Sincerely,
The RoboForex Team