USDJPY: SELL 144.20, SL 145.20, TP 142.20 | 29 May 2025
29 May 2025, USD/JPY
Event to pay attention to today:
21:00 EET. USD - FOMC Meeting Minutes
USDJPY:
The Japanese yen (JPY) fell to a one-week low against its US counterpart during the Asian session on Wednesday, although the intraday decline was not extended. Comments from Japanese Finance Minister Katsunobu Kato indicated that the government will take some measures to curb the recent sharp rise in Japanese government bond (JGB) yields. This, along with the overall positive tone on risks, is undermining the safe-haven Yen and acting as a tailwind for the USD/JPY pair amid some US Dollar (USD) buying for the second day in a row.
However, JPY bears are refraining from aggressive bets amid expectations that the Bank of Japan (BoJ) will raise interest rates again. This is a significant divergence from expectations that the Federal Reserve (Fed) will continue to lower borrowing costs in 2025, which should limit losses for the low-yielding JPY. In addition, uncertainty over US President Donald Trump's tariff policy and geopolitical risks should support the safe-haven yen. In addition, bearish sentiment in the US dollar may limit further upside for the USD/JPY pair.
Trade recommendation: SELL 144.20, SL 145.20, TP 142.20
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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.
