Ultima Markets | USDJPY Analysis: The dovish speech of the Bank of Japan Governor

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USDJPY for MAR 26, 2025.

Fundamental Analysis of USDJPYUSDJPY Key Takeaways

• Probability of a rate hike in Japan in the second half of the year: Market speculation about further rate hikes by the Bank of Japan has pushed Japanese government bond yields to their highest level in nearly two decades, and the swap market expects a 76% chance of a rate hike at the Bank of Japan‘s July meeting and a 100% chance of a rate hike at the end of October.

• Speech by the Bank of Japan Governor: Today, Bank of Japan Governor Kazuo Ueda said that he will continue to work towards a stable and sustainable inflation target of 2%. It is inappropriate to consider changing the Bank of Japan’s 2% inflation target at this time. Potential inflation is still slightly below 2%. Potential dovish comments push the yen to depreciate in the short term.

Technical Analysis of USDJPY Daily and Hourly Charts USDJPY Daily Chart Insights

(USDJPY Daily Price Chart, Source: Ultima Markets MT4)

• Stochastic oscillator:The indicator accelerates to rise and enters the overbought area, suggesting that the short-term bullish trend is strong and cannot be easily bearish.

• Strong resistance area: USD/JPY is currently rising close to the long-short conversion price area, which is also near the green 200-day moving average. The exchange rate has already reacted to the resistance decline yesterday, so be wary of false breakthroughs.

USDJPY H1 Chart Analysis

(USDJPY H1 Price Chart, Source: Ultima Markets MT4)

• Stochastic oscillator:The indicator accelerates to rise and enters the overbought area, suggesting that the short-term bullish trend is strong and cannot be easily bearish.

• Strong resistance area: USD/JPY is currently rising close to the order near 150.550, and the second resistance price is near the previous false breakthrough resistance line of 150.761.

Pivot Indicator Insights for USDJPY

(USDJPY M30 Price Chart, Source: Ultima Markets APP)

• According to Pivot Indicator in Ultima Markets APP, the central price of the day is established at 149.90,

• Bullish Scenario: Bullish sentiment prevails above 149.90, first target 150.75, second target 150.95;

• Bearish Outlook: In a bearish scenario below 149.90, first target 149.55, second target 149.20.

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