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USDJPY:
The Japanese Yen (JPY) is declining during the Asian session on Friday after data from Japan showed that the annual national Consumer Price Index (CPI) slowed in February. This, along with a modest rise in the US Dollar (USD), helped the USD/JPY pair consolidate the overnight rebound from the weekly low and move back above the 149.00 level. However, bets that the Bank of Japan (BoJ) will continue to raise interest rates amid expectations that strong wage growth could stimulate consumer spending and boost inflation should limit JPY losses.
In addition, lingering uncertainty over US President Donald Trump’s aggressive trade policies and their impact on the global economy, as well as geopolitical risks, should serve as a tailwind for the safe-haven JPY. Meanwhile, bets that the Federal Reserve (Fed) will soon resume its rate-cutting cycle amid slowing rate hikes, which could deter dollar bulls from aggressive bets, are strongly at odds with the Bank of Japan’s hawkish expectations. This could help limit losses on the low-yielding yen and limit the upside for the USD/JPY pair.
Trade recommendation: SELL 149.20, SL 150.10, TP 147.60
Origin: FreshForex
