USD/JPY Price Analysis and Chart 24/04: Improved Market Sentiment Today
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The world of foreign exchange is always abuzz with activity, and the USD/JPY currency pair is no exception. For the past two consecutive trading sessions, this pair has been rebounding from its recent losses, which had reached a low of 139.88 – its lowest point in seven months. But what’s behind this upward trend, and what can we expect from the USD/JPY in the near future?
### A Change in Sentiment
One major factor contributing to the improved sentiment surrounding the USD/JPY is the easing of trade tensions between the United States and China. Recently, President Trump announced that he has no intention of dismissing Federal Reserve Chairman Jerome Powell, which has alleviated concerns about political interference in US monetary policy. Additionally, Trump has indicated a softer stance towards China, stating that he plans to be “very gentle” in any trade negotiations. This shift in tone has had a positive impact on investor sentiment, leading to a rebound in the US dollar.
### US Dollar Performance
The US dollar has been on a bit of a rollercoaster ride in recent months. After reaching its lowest levels in three years, the dollar has begun to rebound amid easing concerns about the independence of the Federal Reserve and growing hopes for a de-escalation of the trade war. US Treasury Secretary Scott Bessent has acknowledged that the tariff standoff with China is unsustainable and stressed the need for both sides to de-escalate soon.
Despite this recent recovery, the US dollar remains down about 9% since the beginning of 2025 and has lost much of its safe-haven appeal in recent weeks. Ongoing trade tensions, recession risks, and political pressure on the US Federal Reserve have prompted many investors to move away from US assets. However, with the recent improvement in sentiment, it will be interesting to see how the dollar performs in the coming weeks.
The US stock market has also been impacted by the easing of trade tensions. Yesterday, US stock market indices closed higher, with the S&P 500 index rising by 1.7%, the Nasdaq index by 2.5%, and the Dow Jones Industrial Average by 419 points. This boost in sentiment was largely driven by Trump’s confirmation that he would not dismiss Federal Reserve Chairman Jerome Powell, as well as his softer stance towards China.
However, the three US stock indices retreated from their highs as investors questioned whether a trade resolution was imminent. US Treasury Secretary Bessent indicated that Trump had not proposed a unilateral reduction in tariffs and that talks with China had not yet begun, dampening early optimism. Tesla shares rose 5.4% after CEO Elon Musk announced he would significantly reduce his involvement with the government to focus on leading his companies. Boeing shares also rose 6.1%, supported by improved aircraft deliveries.
### Technical Analysis
From a technical standpoint, the overall trend for the USD/JPY currency pair remains bearish despite its recent gains. A break of the overall bearish trend on this timeframe will not occur without the bulls successfully pushing towards the resistance levels of 145.00 and 147.80, respectively. Conversely, on the same timeframe, the support levels of 141.70 and 140.00 will remain a real threat to the upward movement and important areas for strong bear control.
The 14-day RSI indicator is moving away from the oversold barrier, while the MACD indicator remains stable near the oversold peak so far. The USD/JPY pair will be affected by the extent of investors’ risk appetite, as well as the release of the US weekly jobless claims and durable goods orders figures.
### Trading Tips
For those looking to trade the USD/JPY, here are a few key takeaways:
* The USD/JPY trend remains bearish, and market tensions will ultimately support the Japanese yen.
* Keep an eye on the release of US economic data, such as weekly jobless claims and durable goods orders figures, which can impact the USD/JPY pair.
* Consider the overall technical trend, including support and resistance levels, when making trading decisions.
### Conclusion
In conclusion, the USD/JPY currency pair has seen a rebound in recent sessions, driven by improved sentiment surrounding the US dollar and easing trade tensions between the US and China. While the overall trend remains bearish, there are opportunities for traders to take advantage of the current market conditions. By keeping a close eye on economic data, technical trends, and market sentiment, traders can make informed decisions and navigate the complex world of foreign exchange. So, what’s your take on the USD/JPY? Share your thoughts and predictions in the comments below.
As we continue to monitor the USD/JPY, one thing is certain – the world of foreign exchange is always full of surprises. Stay ahead of the curve and stay informed with the latest market analysis and insights. Whether you’re a seasoned trader or just starting out, there’s never been a better time to get involved in the exciting world of forex trading. So, what are you waiting for? Join the conversation and start trading today.
