Event to pay attention to today:
21:00 EET. USD – FOMC Rate Decision
USDJPY:
During Wednesday’s Asian session, the Japanese Yen (JPY) remained under pressure against its US counterpart, although it lacked bearish conviction amid expectations of further interest rate hikes by the Bank of Japan (BoJ). The recent decline in US Treasury bond yields, driven by rising speculation that the Federal Reserve (Fed) will continue to cut rates in 2025, is likely to limit the downward trend for the low-yielding yen.
Concerns over the economic impact of US President Donald Trump’s threatened tariffs, along with the overall positive tone on risks, are undermining the safe-haven yen. Overnight positivity in the US Dollar (USD) has contributed to the USD/JPY pair trading with a positive bias above the mid 155.00s. However, traders are likely to adopt a wait-and-see stance ahead of the FOMC monetary policy decision, due to be announced later today.
Trade recommendation: Trading predominantly Buy orders from the current price level.
Origin: FreshForex
