Key events today:

12:30 UTC: USD – Core Personal Consumption Expenditures.

The Japanese yen (JPY) is languishing near a multi-decade low against its American counterpart during Friday’s Asian session. Following a historic decision in March to raise short-term interest rates for the first time in 17 years, the central bank is expected to leave policy settings and bond purchase volumes unchanged amid signs of cooling inflation in Japan. The lack of action from Japanese authorities and a lower consumer price index in Tokyo also apply pressure.

At the same time, the absence of any decisive actions by Japanese authorities to support the national currency leaves no respite for JPY bulls. Meanwhile, the US dollar (USD) remains near a two-week low reached on Thursday in response to data indicating a sharp slowdown in US economic growth, which in turn limits the potential for USD/JPY growth. However, unwanted inflation growth has confirmed market bets that the Federal Reserve (Fed) will be raising interest rates for a longer period, which should provide a tailwind for the currency pair ahead of the release of the US Personal Consumption Expenditures (PCE) index.

Recommendations: Predominantly trade Buy orders from the current price level.