USDJPY: SELL 142.90, SL 143.20, TP 141.10 | 25 Abril 2025

Event to watch out for today:

15:30 EET. USD - US Initial Jobless Claims Number

USDJPY:

The Japanese Yen (JPY) rose against its US counterpart during the Asian session on Thursday and for now appears to have paused its pullback from a multi-month high reached earlier this week. US Treasury Secretary Scott Bessent dampened market expectations of a quick resolution to the trade standoff between the US and China, which helped revive demand for the safe-haven yen. In addition, growing confidence that the Bank of Japan (BoJ) will maintain its stance on policy normalisation and continue to raise interest rates in 2025 supported the yen.

However, market participants forecast a delay in BoJ rate hikes as US President Donald Trump's tariff measures have clouded the economic outlook, which could deter yen bulls from aggressive bets. Meanwhile, the Bank of Japan's relatively tight outlook remains widely at odds with expectations that the Federal Reserve (Fed) will soon resume rate cuts. This should continue to serve as a tailwind for the low-yielding Yen, which, along with the lack of follow-through buying of the US Dollar (USD), favours USD/JPY bears.

Trade recommendation: SELL 142.90, SL 143.20, TP 141.10

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