USDJPY: SELL 142.30, SL 144.00, TP 140.30 | 18 Abril 2025

Event to pay attention to today:

15:30 EET. USD - Unemployment Claims

USDJPY:

The Japanese yen (JPY) is retreating after hitting a new multi-month high against its US counterpart during Thursday's Asian session, although a meaningful decline still seems out of reach. A slight improvement in global risk sentiment - as evidenced by the overall positive tone in equity markets - is undermining the safe-haven yen. This, along with a modest rebound in the US Dollar (USD) from multi-year lows, is fuelling the USD/JPY pair's intraday recovery of more than 100 pips from the 141.60 area.

Nevertheless, uncertainty surrounding US President Donald Trump's tariff announcement, the rapidly escalating trade war between the US and China and global recession fears may temper market optimism. Moreover, expectations that the Bank of Japan (BoJ) will continue to raise interest rates - although it may delay this decision amid concerns over the economic damage caused by Trump's tariffs - should continue to act as a tailwind for the yen. In addition, hopes of a trade deal between the US and Japan could also help limit deeper yen losses.

Trade recommendation: SELL 142.30, SL 144.00, TP 140.30

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