USDJPY: BUY 139.90, SL 139.00, TP 141.30 | 23 April 2025

USDJPY:

The Japanese yen (JPY) is declining during the Asian session on Tuesday amid fading hopes of a trade deal between the US and Japan soon. In addition, signs of stability in Asian stock markets and a modest rebound in US index futures are undermining the safe-haven yen. This, along with a modest rebound in the US dollar from the three-year low reached on Monday, is lifting the USD/JPY pair above 141.00.

Meanwhile, investors remain concerned about the potential economic impact of US President Donald Trump's aggressive tariff policy. This, along with fears that an all-out trade war will trigger a global recession, could dampen optimism in the markets and serve as a tailwind for the yen. Additionally, bets that the Bank of Japan (BoJ) will continue to raise interest rates in 2025 should help limit deeper JPY losses.

Following the first Japan-US talks last week, Japan's Economic Development Minister Ryosei Akazawa said that any agreement would likely take some time, as it is difficult to say how long it will take to bridge the gap between the two sides.

Trade recommendation: BUY 139.90, SL 139.00, TP 141.30

Connect Drawdown bonus 101% and trade with double your deposit! Bonus funds will help you increase your profits or withstand a sudden drawdown!