USDJPY: SELL 142.50, SL 144.50, TP 140.50 | 15 Abril 2025

USDJPY:

The Japanese Yen (JPY) is attracting new buyers at the start of the new week and remains within reach of the highest level since the end of September 2024 reached last Friday amid significant weakness in the US Dollar (USD). Fears over the rapidly escalating trade war between the US and China and its impact on the global economy continue to support traditional safe-haven assets, including the Yen. In addition, hopes that Japan may strike a trade deal with the US proved to be another supportive factor for the yen.

Meanwhile, signs of rising inflation in Japan keep the possibility of further interest rate hikes by the Bank of Japan (BoJ) alive. Conversely, investors are assessing the possibility of aggressive policy easing by the Federal Reserve (Fed) amid concerns that an escalating trade war between the US and China will hamper US economic growth. This would further narrow the rate differential between Japan and the US, suggesting that the path of least resistance for the low-yielding yen lies to the upside.

Trade recommendation: SELL 142.50, SL 144.50, TP 140.50

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