USDJPY: SELL 143.30, SL 143.90, TP 142.00 | 28 May 2025

Event to watch out for today:

17:00 EET. USD - Consumer Confidence Indicator

USDJPY:

The Japanese yen (JPY) is attracting fresh buyers in Tuesday's Asian session following the release of strong inflation data. Additionally, comments from Bank of Japan Governor Kazuo Ueda left the door open for further policy tightening by the central bank. This is in sharp contrast to expectations that the Federal Reserve (Fed) will continue to cut interest rates this year, and is proving to be a key factor that is providing a nice lift for the yen.

In addition, persistent geopolitical risks related to the protracted war between Russia and Ukraine and conflicts in the Middle East are contributing to the yen's safe haven status. The US dollar (USD), on the other hand, remains near its lowest level since April 22 amid concerns over the deteriorating US fiscal situation. This contributes to the USD/JPY pair's fall to 142.00, or more than a one-month low, and supports the prospects for further losses.

Trading recommendation: SELL 143.30, SL 143.90, TP 142.00

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