USDJPY: SELL 151.75, SL 153.50, TP 150.00 | 19 Febrero 2025

Event to pay attention to today:

21:00 EET. USD - FOMC Meeting Minutes

USDJPY:

The Japanese yen (JPY) failed to capitalise on modest gains during the Asian session and declined for the second consecutive day against its US counterpart on Wednesday. Optimism over the postponement of Trump's retaliatory tariffs and talks aimed at ending the war between Russia and Ukraine continue to maintain a positive tone in equity markets. This, in turn, is seen as a key factor undermining the safe-haven Yen, which, along with a modest rise in the US Dollar (USD), is helping the USD/JPY bounce around 40 pips from the daily low.

Nevertheless, a significant decline in the Yen seems elusive amid rising bets for further interest rate hikes by the Bank of Japan (BoJ) amid signs of rising inflation. Meanwhile, the BoJ's hawkish expectations have led to a recent significant rise in Japanese bond yields. As a result, the narrowing rate differential between Japan and other countries supports the prospect of some Yen dip-buying. This, in turn, calls for some caution before making aggressive bullish bets on the USD/JPY pair ahead of the publication of the FOMC meeting minutes today.

Trade recommendation: SELL 151.75, SL 153.50, TP 150.00

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