USDJPY: BUY 144.50, SL 144.30, TP 145.40 | 07 July 2025

Events to pay attention to today:

02:30 EET. JPY - Change in household spending

USDJPY:

The Japanese yen (JPY) is rising during Friday's Asian session after the release of strong domestic household spending data, which leaves room for further interest rate hikes by the Bank of Japan (BoJ). This, along with a moderate decline in the US dollar (USD), is pushing the USD/JPY pair away from its weekly high of around 145.20-145.25, reached on Thursday in response to optimistic US employment data.

Meanwhile, investors remain concerned that global trade tensions caused by US President Donald Trump's customs policy could complicate the BoJ's efforts to normalise monetary policy. In addition, the prevailing risk appetite may limit the growth of the safe-haven JPY and help limit losses for the USD/JPY pair. Traders may also refrain from aggressive bets on the direction of the market amid an expected decline in liquidity due to the US holiday.

Trading recommendation: BUY 144.50, SL 144.30, TP 145.40

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