Events to pay attention to today:
15:30 EET. USD – Consumer Price Index
17:00 EET. USD – Federal Reserve Chairman Jerome Powell Speaks
USDJPY:
The Japanese yen (JPY) declined for a third consecutive day on Wednesday, reaching a one-week low against its US counterpart during the Asian session.Concerns that US President Donald Trump’s tariffs on commodity imports could potentially compromise Japan’s economic stability, coupled with the overall positive sentiment in global stock markets, have eroded the yen’s traditional status as a safe-haven asset. Additionally, the emergence of some US Dollar (USD) buying in the last hour has brought the USD/JPY pair back closer to the mid 153.00s.On Tuesday, Federal Reserve (Fed) Chairman Jerome Powell said that the US central bank is in no rush to cut rates, amid concerns that Trump’s trade policies could spur inflation, which in turn is helping to revive demand for the US Dollar. Trump’s remarks have tempered expectations of a significant narrowing of the US-Japan rate differential and have led to outflows from the lower-yielding yen. However, the Bank of Japan’s (BoJ) expected interest rate hikes may limit further yen losses.
Trade recommendation: BUY 153.60, SL 152.90, TP 154.50
Origin: FreshForex
