USDJPY: SELL 142.05, SL 143.40, TP 139.80 | 21 Abril 2025

USDJPY:

The USD/JPY pair is down to 142.25 in thin trading session on Friday. The US Dollar (USD) is declining against the Japanese Yen (JPY) amid concerns over the economic impact of tariffs.

Data released by the Statistics Bureau of Japan on Friday showed that the national consumer price index (CPI) rose 3.6% in March, up from the previous reading of 3.7%. Meanwhile, the national CPI excluding fresh food was 3.2% y/y in March, up from 3.0% previously. The reading was in line with the market consensus.

Finally, the consumer price index excluding fresh food and energy rose 2.9% y/y in March vs. the previous reading of 2.6%. The Japanese Yen remains strong against the US Dollar as an immediate reaction to Japanese inflation data.

However, JPY gains may be limited as Bank of Japan (BoJ) officials signalled a pause in the consideration of interest rate hikes, emphasising the need to monitor uncertainty heightened by US tariff measures.

Economic data from the US on Thursday was mixed. US initial jobless claims fell to their lowest level in two months, signalling a stable labour market. In addition, the Philadelphia Fed index fell short of expectations, a warning shot from the manufacturing sector.

Trade recommendation: SELL 142.05, SL 143.40, TP 139.80

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