Important events today:

12:30 UTC: USD – Producer Price Index.

14:00 UTC: USD – University of Michigan Consumer Sentiment Index.

The Japanese yen (JPY) is losing ground against the strengthening US dollar (USD), driven by rising Treasury yields. However, volatility in the yen is expected to persist amid speculation about intervention by Japanese authorities following weaker-than-expected US Consumer Price Index (CPI) data.

Confirmation of any interventions will only be available after the Japanese Ministry of Finance publishes updated intervention data at the end of the month.

Chief Cabinet Secretary Yoshimasa Hayashi stated his readiness to use all available measures regarding forex. Hayashi noted that the Bank of Japan (BoJ) would determine the specifics of monetary policy. He expects the BoJ to implement appropriate measures for sustainable and stable achievement of the 2% target inflation rate, Reuters reported on Friday.

The Bank of Japan (BoJ) might raise interest rates at the upcoming July meeting. This expectation has supported the yen, contributing to a decline in the USD/JPY pair.

Recommendations: Predominantly trade with Sell orders from the current price levels.