USDJPY: SELL 140.75, SL 141.25, TP 140.10 | 22 Abril 2025

USDJPY:

The Japanese Yen (JPY) started the new week on a positive note and strengthened to its highest level since September against a weakened US Dollar (USD) during the Asian session. Optimism over US-Japan trade talks and bearish sentiment in global financial markets continue to drive flows towards the safe-haven yen. In addition, data released on Friday showed that Japan's core inflation accelerated in March and left the door open for further interest rate hikes by the Bank of Japan (BoJ), which is seen as another factor supporting the JPY.

Meanwhile, JPY bulls did not seem to be affected by reports that the BoJ will lower its growth estimates amid concerns over the potential economic impact of US President Donald Trump's imposition of harsh tariffs. The US dollar, on the other hand, is sinking to a new two-year low as uncertainty over Trump's trade policies undermines investor confidence in US economic growth. Even Federal Reserve (Fed) Chairman Jerome Powell's relatively tough comments on Friday did little to impress dollar bulls, suggesting that the path of least resistance for the USD/JPY pair remains downward.

Trade recommendation: SELL 140.75, SL 141.25, TP 140.10

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