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Japanese Yen selling bias remains unabated; USD/JPY moves closer to 150.00
Tuesday, 18 March 2025 13:54 WIB | USD/JPY |DolarYen

The Japanese Yen (JPY) extends its steady intraday descent through the early European session on Tuesday, lifting the USD/JPY pair to a fresh two-week high, around the 149.85 region in the last hour.

The global risk sentiment remains well supported by the optimism over China's stimulus measures and hopes for a Ukraine peak deal, which, in turn, is seen undermining the safe-haven JPY.

Apart from this, a modest US Dollar (USD) recovery from a multi-month low touched on Monday lends additional support to the currency pair.

Meanwhile, the markets have been pricing in the possibility that the Bank of Japan (BoJ) will continue raising interest rates this year.

The bets were reaffirmed by positive results from Shunto spring wage negotiations, which, along with worries about the potential economic fallout from US President Donald Trump's trade tariffs, could limit deeper JPY losses.

Furthermore, bets for further policy easing by the Federal Reserve (Fed) should cap the USD and the USD/JPY pair ahead of the highly-anticipated BoJ and the Fed policy decisions on Wednesday.

Source: FXStreet

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