Русский
USDJPY:
The Japanese yen (JPY) strengthened against its US counterpart during the Asian session on Thursday, recovering from a one-week low recorded the previous day. The chaotic implementation of US President Donald Trump’s tariffs and their impact on the global economy could continue to drive demand for the yen, which is often seen as a safe-haven currency. Additionally, rising speculation that the Bank of Japan (BoJ) will continue to raise interest rates in the face of rising Japanese inflation is further supporting the yen.
The BoJ’s hawkish expectations continue to support the recent rise in Japanese government bond (JGB) yields. Consequently, the narrowing gap in rates between Japan and other countries is further boosting JPY yields. Conversely, the US Dollar (USD) is trading close to multi-month lows as market participants anticipate several rate cuts from the Federal Reserve (Fed) this year. This, in turn, is contributing to limiting the growth of the USD/JPY pair.
Trade recommendation: BUY 148.20, SL 147.20, TP 149.10
Origin: FreshForex
