Important events today:

12:30 UTC: USD – Non-Farm Employment Change.

The Japanese yen (JPY) is declining for the second consecutive day on Friday, reacting to disappointing Japanese household spending data. This comes amid a fourth consecutive month of falling real wages in Japan and concerns that global trade tensions could weaken wage dynamics, complicating the Bank of Japan’s (BoJ) efforts to normalize monetary policy. Hopes for the resumption of trade talks between the US and China and a generally positive risk sentiment are additional factors undermining the safe-haven yen. This helps the USD/JPY pair stay above the mid-143.00 level during the Asian session.

Meanwhile, market participants continue to consider the possibility that the Bank of Japan will keep raising interest rates in 2025 amid rising inflation in Japan. This, along with persistent geopolitical risks, may limit deeper losses for the JPY. The US dollar (USD), on the other hand, is hovering near its lowest level since April 22, reached on Thursday, amid concerns over worsening US budget deficit prospects and bets that the Federal Reserve will continue to lower borrowing costs. This may support the lower-yielding yen and limit the USD/JPY pair. Traders may also prefer to wait for the release of the key US Non-Farm Payrolls (NFP) report.

Recommendations: SELL 143.70, SL 144.70, TP 141.70.