Yen recovers as USD/JPY Pair Falls After Trump Remarks

Updated June 24, 2025

The USD/JPY pair experienced ⁣a ‍sharp decline, falling to⁣ 145.49 on Tuesday as⁤ the yen began to recover from weeks of depreciation. This shift follows a broad⁣ weakening of the dollar, ‌triggered by former President Donald Trump’s ⁤remarks regarding the ceasefire‌ between ‌Israel and Iran, which he described as a “12-day war.”

Market reactions were muted following Iran’s retaliatory strike on a U.S. base in Qatar, which resulted in no casualties. Tehran’s decision to keep the Strait of Hormuz open also alleviated concerns about potential disruptions‍ to supply chains. Investors are closely monitoring the Bank of Japan’s (BoJ) policy decisions. During​ its June meeting,the central bank maintained its key rate at 0.5% but indicated a readiness for further tightening,citing persistent core inflation driven by companies passing increased ‍wage costs onto consumers.

Given the yen’s prolonged depreciation, analysts suggest a period of consolidation, if not a full recovery, is now likely for the currency.Technical analysis provides ⁤further insights into potential market⁢ movements.

Technical Analysis: USD/JPY

On the H4 chart, the ‌USD/JPY pair broke above the 145.00 consolidation‌ range, rallying to 148.00 before pulling back. A corrective decline ‍is underway, potentially retesting the 145.00⁣ level as a technical pullback to the breakout point. Once this correction concludes, another upward wave toward 148.40 could develop, with a longer-term target at 149.00. The MACD indicator supports this ⁣scenario, with its signal line remaining⁤ above zero after exiting the histogram zone, suggesting a decline back to the zero line at a minimum.

Analyzing the⁣ H1 chart, the USD/JPY completed an⁣ uptrend to 148.00 before forming a consolidation ‌range near 146.50. A downside ⁤breakout could extend the decline toward 145.00, potentially followed by ‍a new upward wave targeting 149.00. The Stochastic oscillator aligns with this outlook, with its signal line below 20 and pointing​ downward.

What’s next

Looking ​ahead, the yen’s rebound hinges⁤ on both external dollar weakness and ‌domestic policy adjustments.Technical indicators suggest a ​near-term consolidation phase​ before‌ a potential⁢ renewed⁢ upside⁤ for the USD/JPY pair. Investors⁤ should closely monitor economic data releases and central bank communications for further clues about future currency ‌movements and potential opportunities in the ⁣ USD/JPY market,considering both yen strength and technical analysis.