USDJPY: BUY 148.90, SL 148.40, TP 150.10 | 18 Marzo 2025

Event to watch out for today:

14:30 EET. USD - Change in retail trade volume

USDJPY:

The Japanese yen (JPY) fluctuated between moderate gains and minor losses against its US counterpart during Monday's Asian session amid mixed fundamentals. Optimism driven by China's stimulus measures announced over the weekend is evident in the overall positive tone in Asian stock markets. This, in turn, is seen as a key factor undermining the safe-haven yen.

Nevertheless, a significant yen depreciation remains elusive amid diverging policy expectations between the Federal Reserve (Fed) and the Bank of Japan (BoJ). In addition, geopolitical risks and concerns over the economic impact of US President Donald Trump's tariffs are supporting the yen. In addition, bearish sentiment around the US Dollar (USD) should restrain the USD/JPY pair.

Traders may also refrain from aggressive directional bets and prefer to step aside ahead of this week's key central bank events - the Bank of Japan and Fed decisions on Wednesday. This calls for caution from the yen bears and positioning for a continuation of the recent rebound in the USD/JPY pair from the multi-month low around 146.55-146.50 reached last Tuesday.

Trading recommendation: BUY 148.90, SL 148.40, TP 150.10

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