Events to watch out for today:

14:30 EET USD – Change in retail trade volume

16:30 EET USD – Change in natural gas reserves

USDJPY:

The Japanese Yen (JPY) failed to make meaningful gains during the Asian session on Thursday and remains within the previous day’s extended trading range against its US counterpart. The results of Japan’s spring wage negotiations showed that most companies agreed to union demands for wage increases, paving the way for an imminent policy change by the Bank of Japan (BoJ). The ongoing geopolitical tensions provide some support to the safe-haven Japanese Yen, which, along with weak demand for the US Dollar (USD), puts some pressure on the USD/JPY pair.

The US Dollar is unable to gain meaningful momentum as investors look for more clarity on the path of the Federal Reserve (Fed) rate cut. This further reinforces the USD/JPY pair’s range-bound price movement as traders now look ahead to key central bank events next week – the long-awaited BOJ decision on Tuesday and the Fed’s policy update on Wednesday – before making new directional bets.

Trading recommendation: Trade buy orders when reaching from the 148.10 price level. Sell at the price level of 147.80.

Origin: FreshForex