USDJPY: SELL 143.50, SL 144.00, TP 142.40 | 03 Junio 2025

An event to watch out for today:

17:00 EET. USD - ISM Manufacturing Index

USDJPY:

On Monday, the Japanese yen (JPY) maintained its lead over the US dollar for the third day in a row and appears poised for further strengthening amid a combination of favorable factors. The Tokyo Consumer Price Index (CPI) released on Friday showed that core inflation accelerated more than expected in May and confirmed forecasts that the Bank of Japan (BoJ) will continue to raise interest rates. In addition, ongoing trade uncertainty and geopolitical risks are proving to be key factors supporting the Japanese yen as a safe haven.

Meanwhile, comments by Japan's chief trade negotiator, Ryosei Akazawa, indicate progress in trade negotiations with the US and fuel hopes for an early conclusion of an agreement this month, which in turn provides additional support for the Japanese yen. On the other hand, the US dollar (USD) is attracting new sellers amid growing recognition that the Federal Reserve (Fed) will continue to lower borrowing costs amid signs of weakening inflation. This is further benefiting the lower-yielding Japanese yen and pulling the USD/JPY pair below the 143.00 mark during the Asian session.

Trading recommendation: SELL 143.50, SL 144.00, TP 142.40

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