USDJPY: BUY 151.80, SL 151.10, TP 152.70 | 17 February 2025

USDJPY:

The Japanese Yen (JPY) has strengthened following the release of a robust Gross Domestic Product (GDP) report, which revealed that Japan's economic growth in the fourth quarter surpassed expectations. This development coincides with indications of rising inflationary pressures in Japan, thereby validating market predictions of additional interest rate hikes by the Bank of Japan (BoJ). Consequently, the Yen has experienced a notable appreciation.

Optimism surrounding US President Donald Trump's decision to postpone retaliatory tariffs, coupled with the narrowing of the rate differential between the US and Japan, further supports the low-yielding JPY.Conversely, the US dollar (USD) is struggling to regain its footing, holding near the two-month low recorded on Friday. This has led to a third consecutive day of decline for the USD/JPY pair, dropping to the 152.75 area during the Asian session.

Trade recommendation: USDJPY: BUY 151.80, SL 151.10, TP 152.70

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