Technical Analysis of the Japanese Yen Index
The Japanese Yen Index continues to move sideways within its main bearish trend on the daily and weekly timeframes, ending with a decline on the 4-hour chart. Prices turned lower from the DFVG zone near 734.0 and are currently trading around 730. The bearish trend is expected to continue on both the daily and 4-hour timeframes.

Key Economic News
Japan’s economy recorded faster-than-expected growth in the first quarter of fiscal year 2025, supported by strong consumer spending, giving a positive boost despite external challenges. On the political front, Prime Minister Shigeru Ishiba announced his resignation following election losses, adding uncertainty to the outlook for economic policy. Meanwhile, experts warned that the yen’s weakness could drive inflation higher due to rising import costs. Markets remain focused on the Bank of Japan’s next moves regarding interest rates and financial stability.

Liquidity Levels
Prices are expected to decline further, targeting 724.0 first and then 718.0.

Invalidation Scenario
The bearish outlook will be invalidated if prices reach the 737.0 level.