Event to pay attention to today:
15:30 EET. USD – Non-Farm Employment Change
USDJPY:
The Japanese yen (JPY) extended its uptrend for the fourth consecutive day, reaching a near two-month high against its US counterpart during the Asian session on Friday. Recent indications of a hawkish stance from the Bank of Japan (BoJ) have led to increased market speculation about the possibility of further interest rate hikes. The narrowing of the rate differential between the BoJ and other major central banks, including the Federal Reserve (Fed), is a key factor that continues to support the lower-yielding Japanese Yen.
In addition, the recent sharp pullback in the US Dollar (USD) from a two-year high has pushed the USD/JPY pair below 151.00 for the first time since 10 December. Meanwhile, uncertainty surrounding US President Donald Trump’s tariff policy is hindering further yen strength. Additionally, traders appear hesitant to adopt a risk-averse stance ahead of the US Non-Farm Payrolls (NFP) report, which has contributed to a 70-pip bounce in the currency pair from the day’s low.
Trade recommendation: Trading predominantly Buy orders from the current price level.
Origin: FreshForex
