USDJPY: SELL 147.20, SL 147.70, TP 146.50 | 12 March 2025
12 March 2025, USD/JPY
An event to watch out for today:
16:00 EET. USD - JOLTs Job Openings
USDJPY:
The Japanese yen (JPY) hit a new multi-month high against its US counterpart during Tuesday's Asian session despite downward revisions to Japan's Q4 GDP data, complicating the Bank of Japan's (BoJ) plans for further rate hikes. The recent sharp narrowing of the yield differential between Japan and other countries has proven to be a key factor that continues to act as a tailwind for the yen. In addition, risk-off sentiment is further supporting the safe-haven yen.
At the same time, yen bulls seem unaffected by concerns that US President Donald Trump may impose new tariffs against Japan. The US Dollar (USD), on the other hand, remains near multi-month lows amid rising bets that a tariff-induced slowdown in US growth could force the Federal Reserve (Fed) to cut borrowing costs several times this year. This, in turn, indicates that the path of least resistance for the USD/JPY pair lies to the downside and supports the prospects for further losses.
Trading recommendation: SELL 147.20, SL 147.70, TP 146.50
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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.
