USDJPY: SELL 144.90, SL 145.10, TP 144.00 | 26 Juni 2025

Events to pay attention to today:

17:00 EET.USD - Fed Chair Jerome Powell will deliver a speech

17:30 EET.USD - Crude oil inventory data from the Department of Energy

USDJPY:

The Japanese yen (JPY) remains in the lead against the US dollar during Wednesday's Asian session and remains close to the weekly high reached the day before, amid a combination of favourable factors. The summary of opinions from participants at the Bank of Japan (BoJ) meeting in June showed that some policymakers called for interest rates to be kept unchanged due to uncertainty about the impact of US tariffs on the Japanese economy. In addition, the fragile truce between Israel and Iran and trade uncertainty are supporting the Japanese yen as a safe-haven currency.

Meanwhile, investors seem convinced that the Bank of Japan will raise interest rates again amid mounting inflationary pressure in Japan. These forecasts are confirmed by Japan's producer price index (PPI), which rose for the third consecutive month in May and remained above 3% year-on-year. In contrast, traders are factoring into their prices the likelihood that the Federal Reserve (Fed) will further lower the cost of borrowing this year. This, in turn, is causing US dollar (USD) bulls to tread cautiously and suggests that the path of least resistance for the lower-yielding Japanese yen remains upward.

Trading recommendation: SELL 144.90, SL 145.10, TP 144.00

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