• There is risk that wage outlook could change significantly due to tariffs impact – Ueda

    • Japanese firms’ wage and price-setting behaviour could change significantly due to tariffs impact
    • BOJ bond buying is exerting intended effect on improving bond market functionality
    • Many bond market players in recent meeting shared BOJ view on that
    • BOJ must continue to balance predictability and flexibility with regards to bond taper plan in April 2026

    USD/JPY continues to sit around 142.80 levels on the day, not too much changed since Ueda began speaking about 20 minutes ago.

    This article was written by Justin Low at www.forexlive.com.

  • BOJ governor Ueda: Uncertainty surrounding domestic, overseas economy is high

    • Economic, price environment is becoming more complex
    • Economic developments have changed sharply since Trump’s tariffs in April
    • Tariffs could hurt demand via heightened uncertainty, which could weigh on the economy
    • Firms could swallow rising costs from tariffs but this will worsen corporate profits
    • In turn, that will have negative impact on wages
    • Tariffs could affect Japan’s economy via financial, FX market moves also
    • Still expect prices to gradually rise and withstand downwards pressure from tariffs
    • Corporate profits also stay elevated despite tariffs impact
    • Underlying inflation in Japan is rising moderately
    • Even as economy slows, Japan likely to maintain mechanism in which wages and prices rise in tandem
    • No change to our view that underlying inflation is to gradually head towards 2% target
    • BOJ expected to continue hiking rates if underlying inflation accelerates to 2% as projected
    • We will judge without preconception whether economic, price forecasts will materialise

    He is still making a case for rate hikes down the road but the wording definitely sounds less confident than say three to four months ago. Back then, Ueda would note that economic conditions are playing out accordingly and will support the conditions for them to hike rates further. Now, he’s just mostly saying that things should play out that way but there is much uncertainty up in the air.

    In case you missed it, his comments from earlier in the day here reinforces that narrative.

    This article was written by Justin Low at www.forexlive.com.

  • Tesla Stock Breakdown: Chart Signals Say Watch Out as Bear Flag Activates

    It’s been a shaky few days for Tesla (TSLA), and the chart is flashing some classic red flags that traders would be wise to pay attention to.

    Tesla closed yesterday with a 1.09% decline, but that’s only part of the story. From its recent high just three days ago, the stock has dropped more than 9%, pulling back hard and filling the gap between May 23 and May 27. That’s often a sign that momentum is shifting—and not in the bulls’ favor.

    The real action started on May 30, when Tesla triggered what many chart-watchers call a bear flag—a bearish continuation pattern that tends to precede deeper downside moves. If you’re new to trading, here’s the short version: after a strong drop, the stock consolidates in a rising channel or wedge, then breaks lower again. And that’s what looks to be unfolding now.

    On the volume side, yesterday’s trading clocked in at 81.87 million shares, still under its 30-day average of nearly 110 million, but enough to confirm interest around these levels. The put/call ratio sits at 0.69, hinting that many traders are still positioning for upside—but contrarians might see that as misplaced optimism.

    The key support zone is around $319, while the next major resistance sits near $368. If Tesla can’t reclaim and hold above the $340s in coming sessions, that $319 level could be tested sooner than many expect.

    This comes just days after renewed headlines involving Elon Musk and substance allegations stirred uncertainty. (Catch up on that here:ForexLive coverage.)

    What should traders do?

    If you’re just starting out, this is a great learning moment:

    • Bear flags suggest continuation of the downtrend, not a bounce.

    • Gaps filling can often mean the easy upside is already gone.

    • And when price hits a support zone, don’t jump in without signs of reversal—wait for volume and a strong green candle first.

    Reminder: Trading stocks like TSLA can be volatile. Use stop-losses, and don’t risk more than you can afford to lose. Always do your own research, this is not financial advice and may even include errors (find any? Comment below so we can fix that!). Visit ForexLive.com (evolving to investingLive.com later this year) for additional views.Trade or invest in Tesla stock at your own risk only.

    This article was written by Itai Levitan at www.forexlive.com.

  • USDCHF breaks below a key support. More downside to follow or just a fakeout?

    The USD remains on the
    backfoot as the support from the more hawkish repricing in interest rates
    expectations got exhausted a couple of weeks ago. The market is now in line with the Fed’s baseline
    projection of two cuts in 2025 and we will likely need strong US data to price
    out the remaining rate cuts and give the greenback a boost.

    The data for now has been good but not strong enough to make the market to price out the two cuts expected by year-end. The next key data will be the prices paid component in the ISM Services PMI tomorrow, the US Jobless Claims figures on Thursday, the NFP report on Friday and the CPI next week.

    On the CHF side, the Swiss CPI today came mostly in line with expectations and didn’t change much in terms of market pricing. The market is still expecting 56 bps of easing by year-end with a 35% chance of a 50 bps cut at the upcoming SNB meeting.

    On the 4 hour chart, we can see that the price broke below the key support at the 0.8185 level and started to consolidate just beneath it. This is where the sellers are piling in with a defined risk above the level to position for a drop into the 0.8038 level next. The buyers, on the other hand, will want to see the price rising back above the 0.8185 level to start targeting the 0.8350 level next.

    This article was written by Giuseppe Dellamotta at www.forexlive.com.

  • BoJ expected to halt its quarterly reductions in JGB purchases starting next fiscal year

    The Bank of Japan is expected to halt its quarterly reductions in government bond purchases starting next fiscal year, according to former board member Makoto Sakurai.

    • The central bank has been trimming its bond buying by ¥400 billion every quarter since last summer, but recent pressure from rising yields has likely made further cuts too risky.
    • Sakurai noted that authorities are concerned continued reductions could push yields higher, making it harder to manage the economy and government debt.

    This article was written by Eamonn Sheridan at www.forexlive.com.

End of content

End of content