Event to watch out for today:
15:30 EET. USD – Quarterly GDP Change
USDJPY:
The Japanese yen (JPY) remains in positive territory against its US counterpart for the second consecutive day, pushing the USD/JPY pair below the mid 154.00s during Thursday’s Asian session. Investors are now convinced that the Bank of Japan (BoJ) will continue to raise interest rates, which in turn lends support to the Yen. In addition, the recent narrowing of the yield differential between the US and Japan has been another factor driving flows towards the lower-yielding yen.
Meanwhile, concerns that US President Donald Trump’s trade policies could escalate into a global trade war may deter JPY bulls from aggressive bets. Additionally, the hawkish pause by the Federal Reserve (Fed) on Wednesday could serve as a tailwind for the US Dollar (USD) and limit USD/JPY losses. Further, the expected European Central Bank (ECB) meeting may increase market volatility and affect the demand for safe-haven yen.
Trading recommendation: Trade mainly with Sell orders from the current price level.
Origin: FreshForex
