Yen Under Pressure Amid Trade Optimism. Forecast as of 12.05.2025

The S&P 500 has risen 14% from its April low, forcing USDJPY bears to flee the market. Reduced demand for safe-haven assets is not the only negative factor for the Japanese yen. The Bank of Japan remains dormant. Let's discuss these topics and make a trading plan.Major Takeaways The Bank of Japan may not raise rates in 2025. Tokyo needs to reach an agreement with Washington by July. The S&P 500 rally is putting pressure on the yen. Short trades can be considered if the USDJPY pair fails