Fundamental Market Analysis for July 16, 2025 USDJPY

20
Event to Watch Today:

15:30 EET. USD – Producer Price Index

USDJPY:

USD/JPY has stabilized around 148.900, maintaining upside potential due to:

Interest Rates: The Fed keeps yields elevated (10-year bonds at 4.46%), while the Bank of Japan maintains an ultra-loose policy, keeping real yields negative.

Political Uncertainty: Upcoming elections in Japan and possible fiscal tightening reduce the yen’s appeal.

Dollar Demand: Trade frictions and geopolitical risks drive safe-haven flows into the dollar.

A break above 149.000 could open the path to 149.500. Support at 148.600 remains a critical barrier for the bullish scenario.

Trade Recommendation: BUY 149.000, SL 148.700, TP 149.900

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