USDJPY:
The Japanese yen (JPY) is falling during Wednesday’s Asian session, retreating from the nearly one-month high it reached against the US currency yesterday. US President Donald Trump expressed skepticism about reaching a trade agreement with Japan and suggested that potential tariffs on Japanese imports would be higher than the 24% announced on April 2. This, along with the underlying optimistic mood, undermines the yen’s status as a safe haven.
Meanwhile, the Bank of Japan’s (BoJ) cautious approach to unwinding its ultra-loose policy has caused investors to postpone their expectations for an imminent interest rate hike. However, investors seem convinced that the BoJ will continue its course of monetary policy normalization, as inflation has consistently exceeded the target level for almost three years. This could limit the losses of the Japanese yen, which, along with the lack of demand for the US dollar (USD), should help to curb attempts to recover the USD/JPY pair.
Trading recommendation: BUY 143.60, SL 143.30, TP 144.50
Origin: FreshForex
