USDJPY: BUY 147.80, SL 147.20, TP 148.65 | 11 March 2025

USDJPY:

The Japanese yen (JPY) has attracted new buyers at the start of a new week and has returned to its highest level since October, which was reached on Friday amid general weakness in the US dollar (USD).Data released during the Asian session on Monday showed that Japan's basic wages rose to a 32-year high in January, while real money income fell 1.8% amid ongoing inflation. This is in line with the expectation that the recent surge in wages will continue, which supports the case for further interest rate hikes by the Bank of Japan (BoJ). In turn, this supports the value of the Japanese Yen.Meanwhile, the BoJ's hawkish stance is pushing Japanese government bond (JGB) yields higher, and the narrowing gap between Japanese and non-Japanese rates is also a factor in the flow of capital towards the low-yielding JPY. Conversely, the USD is approaching multi-month lows amid rising speculation that the Federal Reserve (Fed) will slash interest rates several more times this year, bolstered by a weak US jobs report on Friday. This bodes well for the USD/JPY pair and supports the likelihood of further rate cuts in the near term.

Trade recommendation: BUY 147.80, SL 147.20, TP 148.65

Our company provides an opportunity to earn income not only from your trading. By attracting clients within the affiliate program, you can get up to $30 per lot!