USDJPY: SELL 143.10, SL 143.70, TP 142.35 | 23 May 2025
23 May 2025, USD/JPY
Events to pay attention to today:
15:30 EET. USD - Unemployment Claims
16:45 EET. USD - Services PMI
USDJPY:
The Japanese Yen (JPY) demonstrated resilience by rebounding from an early decline during the Asian trading session. This recovery was largely influenced by positive machinery orders data from Japan, which effectively quashed recession fears and significantly bolstered expectations of an economic recovery. This occurred in anticipation of the Bank of Japan (BoJ) potentially raising interest rates again in 2025, which would have been a positive development for the JPY. Furthermore, flight to safety is identified as a contributing factor to the strengthening of the yen.
The proposed tax bill introduced by US President Donald Trump has led to concerns regarding the financial stability of the US government. This, in addition to the resurgence of tensions between the US and China, is exerting downward pressure on global risk sentiment and prompting investors to seek refuge in traditional safe haven assets, including the yen. This, coupled with the prevailing US Dollar (USD) selling bias, has led to the USD/JPY pair reaching a two-week low, approaching the round figure of 143.00 on Thursday.
Trade recommendation: SELL 143.10, SL 143.70, TP 142.35
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The author's opinion reflects their personal view and is not an investment recommendation. The company is not responsible for any trading results based on the provided analytical data.
