USDJPY: BUY 151.00, SL 150.20, TP 152.15 | 26 Marzo 2025

USDJPY:

The Japanese yen (JPY) declined against its US counterpart for the fourth consecutive day, taking the USD/JPY pair to 151.00, or a three-week high, during Tuesday's Asian session. Sentiment regarding global risk is being fuelled by hopes that US President Donald Trump's so-called retaliatory tariffs will be narrower and less harsh than originally anticipated. In addition, optimism over a possible peace agreement between Russia and Ukraine, and reports that China is considering including services in a subsidy programme to boost consumption, have further bolstered investor confidence, undermining the safe-haven yen.

Meanwhile, minutes from the Bank of Japan's (BoJ) January meeting showed that policymakers discussed under what conditions the central bank should raise interest rates further. However, the minutes gave no clues as to the likely timing of the BoJ's next move and failed to make much of an impression on the JPY bulls. The Bank of Japan's hawkish outlook is at odds with the Federal Reserve's (Fed) forecast of two 25 basis point rate cuts before the end of this year. This could deter dollar bulls from making aggressive bets and support a low-yielding yen, which should limit the upside of USD/JPY.

Trade recommendation: BUY 151.00, SL 150.20, TP 152.15

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