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USDJPY:
The USD/JPY pair continues to decline to the 143.55 level during Asian trading on Friday under pressure from a weak US dollar (USD).
US President Donald Trump said on Wednesday that he would temporarily cut duties on goods from dozens of countries but raise tariffs on China to 125% from 104%. The looming threat of recession both globally and in the US, caused by aggressive trade policies and uncertainty over future measures, is dragging the US Dollar down.
Traders expect the US Federal Reserve (Fed) to resume interest rate cuts in June and is likely to lower the rate by a full percentage point by the end of the year.
Meanwhile, the Bank of Japan’s (BoJ) stance diverges significantly from the prospect of multiple interest rate cuts by the Federal Reserve (Fed). This, in turn, provides some support for the Japanese Yen and acts as a headwind for the pair.
Early on Friday, Japanese Finance Minister Shunichi Kato said that exchange rates should be set by the markets, adding that excessive exchange rate volatility has a negative impact on the Japanese economy.
Trade recommendation: SELL 143.00, SL 144.05, TP 141.55
Origin: FreshForex
