Event to pay attention to today:
17:00 EET. USD – Federal Reserve Chairman Jerome Powell Speaks
USDJPY:
On Tuesday, the Japanese yen (JPY) experienced a surge in demand for safe-haven assets during the Asian trading session. This was due to the introduction of new tariffs on steel and aluminium imports by US President Donald Trump, as well as the Bank of Japan’s (BoJ) plans to further raise interest rates, which bolstered the Japanese yen. This, in turn, has ensured that the USD/JPY pair remains below the 152.00 level, and the support-breakpoint-inverted-resistance confluence point tested on Monday has not been breached.Meanwhile, the imposition of non-exempt tariffs on commodity imports by President Trump has effectively halted negotiations with the European Union, the UK, Japan and other countries. This has the potential to jeopardise Japan’s economic stability and act as a headwind for the yen. Additionally, expectations that Trump’s policies will boost inflation and delay rate cuts by the Federal Reserve (Fed) are supporting the US Dollar (USD) and helping to limit losses for the USD/JPY pair.
Trade recommendation: FLAT
Origin: FreshForex
