JPY pairs outlook. USD/JPY, AUD/JPY , and NZD/JPY analysis.

Posted in Technical Analysis
5 minute read
JPY is potentially set to strengthen against USD, AUD, and NZD.

Our August tactical outlook focuses on JPY pairs. Technical analysis suggests a potential yen strengthening against the USD, AUD, and NZD due to BoJ forecasts and trade deals.

BoJ’s upgraded inflation forecasts keep interest rate hike alive

MTV-1
Fig. 1: Survey of BoJ’s interest rate hike expectations as of 1 Aug 2025 (Source: Bloomberg News)
Japan policy rate
Fig. 2: Japan implied forward short-term interest rate curve as of 1 Aug 2025 (Source: Macro Micro)

US Treasuries-JGBs yield spreads remain below key resistances

10-YR - 2-YR yield spreads of US Treasuries-JGBs medium-term trends as of 4 Aug 2025
Fig. 3: 10-YR & 2-YR yield spreads of US Treasuries/JGBs medium-term trends as of 4 Aug 2025 (Source: TradingView)

USD/JPY false bullish breakout may put a floor on yen weakness

USDJPY major  medium-term trends
Fig. 4: USD/JPY major & medium-term trends as of 4 Aug 2025 (Source: TradingView)

AUD/JPY bearish breakdown from “Double Top”

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Fig. 5: AUD/JPY major & medium-term trends as of 4 Aug 2025 (Source: TradingView)

NZD/JPY bearish breakdown below 20-day and 50-day moving averages

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Fig. 6: NZD/JPY major & medium-term trends as of 4 Aug 2025 (Source: TradingView)