USDJPY: BUY 148.20, SL 147.20, TP 149.20 | 17 Marzo 2025

USDJPY:

The Japanese Yen (JPY) attracts some sellers during the Asian session on Friday and reverses the previous day's positive movement against its US counterpart amid a slight improvement in global risk sentiment. Positive comments from the White House and Canadian officials, as well as reports that Democratic votes will be enough to avoid a US government shutdown, are boosting investor confidence. This in turn leads to a moderate recovery in US equity futures and proves to be a key factor undermining the JPY's safe haven status.

However, a significant JPY depreciation still seems unlikely amid growing confidence that the Bank of Japan (BoJ) will raise interest rates again. Moreover, the BoJ's hawkish expectations have led to the recent sharp narrowing of the rate differential between Japan and other countries, which should limit losses for the low-yielding Yen. In addition, bearish sentiment around the US Dollar (USD) amid expectations that the Federal Reserve (Fed) will cut rates several more times this year may help limit the USD/JPY pair's gains.

Trading recommendation: BUY 148.20, SL 147.20, TP 149.20

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