USDJPY: SELL 149.70, SL 150.10, TP 148.70 | 06 March 2025
06 March 2025, USD/JPY
An event to watch out for today:
15:15 EET. USD - ADP Employment Change
USDJPY:
The USD/JPY pair is attracting buyers towards 149.75 during Asian trading on Tuesday. The US dollar (USD) is strengthening as traders await new cues from US President Donald Trump's speech. Later on Wednesday, the ISM services purchasing managers' index (PMI) for February will take center stage.
“Concerns about weakening U.S. and global economic activity are playing out in the markets, with cyclical factors driving the sell-off,” said Kyle Rodda, senior financial markets analyst at Capital.com.
Hawkish remarks from Japanese authorities may provide some support for the Japanese yen (JPY) and create a headwind for the USD/JPY pair. Bank of Japan Deputy Governor Shinichi Uchida said on Wednesday that the Japanese central bank will continue to raise interest rates if its economic forecasts come to fruition. Uchida added that Japan's shift away from its long-standing ultra-soft monetary policy has only just begun.
The BOJ is expected to continue raising rates this year, supported by improving economic conditions, rising prices and rising wages, in line with the Japanese central bank's efforts to normalize policy.
Trade recommendation: SELL 149.70, SL 150.10, TP 148.70
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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.
