Event to watch today:
06.03 15:30 EET. USD - Non-Farm Employment Change
USDJPY:
Spring bonus of 126% on deposits from $202. Enter the promo code UPSUN126 in your Personal Account and participate! Terms apply
USD/JPY is holding near 157.50 and maintains an upward bias, as the dollar continues to receive support from safe-haven demand. The escalation of the conflict in the Middle East has pushed oil prices higher, and this is particularly unfavorable for Japan, which remains a major energy importer. At the same time, the market has become more cautious in assessing the scale of future US rate cuts, which also works in favor of the dollar.
There is also a limiting factor for the pair, and it is related to Japan. According to economist surveys, the market expects a further rate increase by the Bank of Japan by the end of June, while the central bank leadership has indicated that the March and April meetings will be important for assessing inflation and wage data. This supports the yen and limits the speed of USD/JPY growth, but for now it does not change the overall balance of forces.
As a result, the market remains caught between two themes: expectations of a firmer stance from the Bank of Japan and the current advantage of the dollar amid high oil prices and increased investor caution. For now, the second theme looks stronger. If external tensions do not ease, the base-case scenario for today remains a moderate move higher in USD/JPY, with buying positions taking priority from current levels.
Trading recommendation: BUY 157.50, SL 157.20, TP 158.40
FreshForex offers a wonderful 300% bonus on every deposit of $100 or more, giving you the opportunity to increase your trading volumes!
You can find more analytical information on our website.
