Forex Trading Amid Trump Tariffs: Analysis and Recommendations – April 5, 2025

Discover how to trade forex amid Trump tariffs with precise analysis and free recommendations for USD/JPY – April 5, 2025 on fxadv.com.

Introduction

Welcome to our daily analysis on fxadv.com, where we provide free and accurate content to empower forex traders. Today, April 5, 2025, a major news story is dominating global markets: the implementation of Trump’s new tariffs, announced on April 2, 2025, targeting over 60 countries, including 54% on China and 24% on Japan. These tariffs have triggered significant volatility in currency markets, particularly in pairs like USD/JPY, with the dollar surging 2% against the yen in just a few days. In this article, we’ll explore how to capitalize on this volatility in forex trading, offering a technical analysis of USD/JPY, free trading recommendations, and practical tips for traders. For accurate daily analyses and free signals, visit fxadv.com now!

Why Are Trump Tariffs Trending on Google?

Trump’s tariffs, officially implemented on April 5, 2025, are one of the most impactful news stories in global markets today. Aimed at reducing the U.S. trade deficit, this policy has sparked strong international reactions. China retaliated by raising tariffs on U.S. goods by 15%, while Canada imposed counter-tariffs worth 155 billion Canadian dollars. These developments have led to a 7% drop in oil prices due to reduced Chinese demand and rising inflation in the U.S. from higher imported goods prices. For forex traders, this news translates to significant volatility in currency prices, particularly the U.S. dollar, which is seeing increased demand as a safe-haven asset. To stay updated on these developments in real-time, check out fxadv.com for the latest market news.

Technical Analysis of USD/JPY

The USD/JPY pair is among the most affected by trade tensions between the U.S. and Japan, which faces a 24% tariff. Today, the pair is trading around 146.70, with continued bullish momentum driven by dollar strength.

• Support and Resistance Levels:
  • Key Support: 146.00 (previous correction level), with additional support at 145.50.
  • Key Resistance: 147.20 (strong psychological level), with higher resistance at 147.80.
• Technical Indicators:
  • Moving Average (MA50): At 146.20, supporting the uptrend.
  • Relative Strength Index (RSI): At 62, indicating strong bullish momentum.
  • Average Directional Index (ADX): At 27, confirming the strength of the uptrend.
• Patterns and Candlesticks:
  • A “Double Bottom” pattern at 145.50 in recent days supports the bullish trend.
  • A strong bullish candle in the last session suggests continued momentum.
• Historical Examples:
  • In March 2025, the pair surged from 144.50 to 146.50 after strong U.S. economic news, gaining 1.5% in two days.

• Outlook: The most likely scenario is a continued rise toward 147.20, with a potential pullback to 146.00 if it fails to break resistance.

Economic News Impact

Trump’s tariffs have significantly impacted global markets. China, facing a 54% tariff, has reduced its oil demand, leading to a 7% drop in oil prices. In the U.S., rising prices of imported goods are expected to fuel inflation, potentially prompting the Federal Reserve to maintain high interest rates, supporting the dollar. In Japan, the 24% tariff has weakened the yen, making USD/JPY strongly bullish.

Trading Recommendations for USD/JPY

Based on the technical analysis and economic news, here are the trading recommendations for USD/JPY on April 5, 2025:

• Buy Scenario:
  • Condition: Continued bullish momentum with RSI above 60.
• Sell Scenario:
  • Condition: A decline with weak U.S. data or a dollar pullback.
• Risk Management: Risk no more than 1-2% of your capital per trade.

Practical Tips for Traders

• Monitor international reactions to the tariffs, as they may cause sharp volatility.
• Use pending orders to enter at specified levels.
• Follow daily analyses on fxadv.com for updated recommendations.
• Avoid trading during major economic announcements if you’re a beginner.
• Test the strategy on a demo account first.

Conclusion

In conclusion, Trump’s tariffs, implemented on April 5, 2025, present a significant opportunity for forex traders, especially with the volatility they’re causing in pairs like USD/JPY. We expect the pair to continue its uptrend toward 147.20, supported by dollar strength. Stay updated with our daily analyses on fxadv.com for free and accurate content. Share your thoughts in the comments, and subscribe to our newsletter for live updates. Happy trading!