The USDJPY pair is going down as the US dollar becomes weaker. Recent negative factors include dovish comments from Fed’s Bowman, suggesting possible rate cuts if inflation remains low. Iran’s recent actions, reminiscent of past occurrences, have influenced the market. Also, President Trump mentioned speeding up the announcement of a new Fed Chair. Month-end flows may also weaken the dollar. In Japan, the yen is stable as the Bank of Japan (BoJ) maintains rates at 0.5% and tweaks its bond tapering plan. The BoJ is focused on the US-Japan trade agreement and inflation. On the daily chart, USDJPY is close to the 142.35 level, where buyers may come in. Sellers want to break below this point to aim for 140.00. On the 4-hour chart, dropping below 144.25 suggests more bearish momentum toward 142.35. However, if it rises above 144.25, buyers might drive it up to 146.28. The 1-hour chart indicates a downward trendline, showing bearish momentum. If prices rise above this trendline, it could attract buyers, but sellers are focused on a drop below 144.25. Upcoming data includes US Jobless Claims, US Q1 GDP, Tokyo CPI, US PCE price index, and Michigan Consumer Sentiment. The earlier section clearly explains the recent movement of USDJPY. The decline highlights a weakening dollar, mainly due to Bowman’s comments about potential interest rate cuts if inflation stays low. This shifts market expectations toward a less aggressive monetary policy in the US, usually leading to a weaker dollar across major pairs. Geopolitical issues are also important. Iran’s recent actions echo past events, adding anxiety to market sentiment. Additionally, Trump’s mention of an early Fed Chair announcement introduces another uncertainty. These narrative shifts combined with possible month-end portfolio rebalancing are affecting the dollar’s recent decline. From Tokyo, there weren’t many surprises. The central bank left interest rates unchanged and made small adjustments to bond purchases. The BoJ is focused on domestic inflation trends and external pressures from the US trade relationship, and their control over the yen suggests confidence in their approach. If we look at key trading levels, the 142.35 mark has reappeared as a potential area for buying. There appears to be real interest from buyers at this level, possibly linked to previous demand zones on smaller timeframes. A significant drop below this level could lead the pair toward 140.00, as there isn’t much historical resistance in between. The 4-hour chart shows a consistent downward trend below 144.25. This level has become a key threshold; staying below it means bearish momentum is likely to continue. If prices rise above it, markets may move upward toward 146.28, but this would require new bullish signals from the US. On shorter timeframes, we see lower highs forming beneath a respected downward trendline. This trendline serves as a barrier. However, sharp moves above it could create bullish opportunities. Sellers have already shown strong interest just above 144.25. If prices drop below it, especially with high volume, more short positions may enter the market, focusing on the next major demand area at 142.35. There’s also a lot of economic data coming up. Any significant changes in this week’s US GDP or PCE price readings could shift inflation expectations and prompt adjustments in market positioning. Tokyo’s CPI will be monitored for indications that domestic inflation could rise again, possibly energizing discussions on policy in Japan. We will also watch S&P revisions to sentiment indicators like the Michigan release. Consumer sentiment typically impacts dollar demand, and when combined with PCE shifts, it can strengthen or weaken expectations about future Fed actions. While we stick to our technical maps, macroeconomic factors are currently more impactful than usual. When inflation either exceeds or falls short of expectations, trading positions can change rapidly, especially for short-term trades or any ties to US dollar strength.

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