Important events today:

13:30 UTC – USD: – Producer Price Index m/m

The Japanese Yen (JPY) is declining against its US counterpart during the Asian session on Friday, losing some of the recovery gains registered over the past two days from the YTD low reached earlier this week. Uncertainty over the likely timing of the Bank of Japan’s (BoJ) exit from its negative interest rate policy, as well as an overnight rally in US equity markets have been key factors undermining the safe-haven yen. This, in turn, is helping the USD/JPY pair to move back above the psychological 150.00 mark. Nevertheless, verbal intervention by the Japanese authorities should limit JPY losses and constrain the currency pair.

Meanwhile, weak US retail sales data released on Thursday revived speculation that the Federal Reserve (Fed) will soon start cutting interest rates. This could continue to weigh on the US Dollar (USD) and contribute to continued pressure on the USD/JPY pair, requiring some caution before positioning for further intraday gains. Moving forward, market participants are now turning their attention to the economic agenda in the US, where the Producer Price Index (PPI) will be released. This data, as well as speeches from influential FOMC members, should provide fresh impetus.

Recommendations: Trade predominantly on Buy from current values