Events to pay attention to today:

14:30 EET. USD – CPI m/m

USDJPY:

In Tuesday’s Asian session, the Japanese yen (JPY) continues to perform well against the US dollar. This is due to the rise in Tokyo’s consumer price index last week, the upward revision of fourth-quarter GDP data on Monday, and the higher-than-expected increase in Japan’s producer price index (PPI) in February. There are hopes that a significant wage increase in Japan will boost consumer spending and demand-driven inflation, confirming predictions of an imminent policy change by the Bank of Japan (BoJ) and weakening the yen.

In contrast, the Federal Reserve (Fed) is expected to begin reducing interest rates in June, which will not aid the US Dollar (USD) in capitalizing on its recovery from its lowest level since mid-February, which was reached last Friday. This, in turn, could limit the upside for the USD/JPY pair. Traders are currently hesitant to make aggressive directional bets and are waiting for the latest US consumer inflation data to be released later on Tuesday. The all-important US CPI figure will provide additional information on the timing and pace of Fed rate cuts, which will stimulate demand for the USD and provide fresh impetus.

Trade recommendation: Trading predominantly Sell orders from the current price level

Origin: FreshForex