Event to pay attention to today:
15:30 EET. USD – Unemployment Claims
USDJPY:
The Japanese Yen (JPY) has attracted some buying interest following the release of a stronger-than-expected Producer Price Index (PPI) in Japan on Thursday, which confirms bets on further rate hikes by the Bank of Japan (BoJ).However, the market reaction was short-lived amid concerns over the impact of US President Donald Trump’s tariffs on steel and aluminium imports, as well as upcoming retaliatory tariffs. This helped USD/JPY to hold above 154.00 during the Asian session and remain near the weekly high reached the previous day.Meanwhile, Federal Reserve (Fed) Chairman Jerome Powell made it clear that policymakers are in no hurry to cut interest rates, and US consumer inflation data released on Wednesday suggests that the Fed does not have much room to cut rates this year. This has led to an increase in US Treasury yields, resulting in a widening of the yield differential between the US and Japan and a limitation on the upside for the low-yielding Yen.However, the US Dollar (USD) has experienced difficulty attracting buyers, which may potentially discourage traders from making new bullish bets on the USD/JPY pair.
Trade recommendation: USDJPY: SELL 154.20, SL 153.50, TP 154.80
Origin: FreshForex
