Русский
USDJPY:
The Japanese yen (JPY) attracted some sellers during Tuesday’s Asian session, which, along with a slight rise in the US dollar (USD), helped the USD/JPY pair to stage a modest recovery from the 151.25 area or more than a one-week low. Investors welcomed US President Donald Trump’s delay in imposing retaliatory tariffs. This, in turn, is seen as a key factor undermining the safe-haven yen. However, a significant Yen depreciation still seems unlikely amid rising bets for an interest rate hike by the Bank of Japan (BoJ), helped by the release of robust Q4 Japanese GDP data on Monday.
Meanwhile, the BoJ’s hawkish expectations have led to a significant rise in Japanese government bond yields to multi-year highs. In addition, the recent decline in U.S. Treasury yields, supported by expectations of further interest rate cuts by the Federal Reserve (Fed), has narrowed the differential between U.S. and Japanese rates. This may further deter traders from aggressive bearish bets on the lower-yielding yen. Thus, it would be prudent to wait for strong buying before confirming that the USD/JPY pair has bottomed and positioning for further recovery.
Trading recommendation: BUY 152.00, SL 151.30, TP 153.10
Origin: FreshForex
