Key event today:

11:30 UTC – USD: Core Personal Consumption Expenditures (PCE) Price Index.

The Japanese yen (JPY) fell to a nearly four-week low against its U.S. counterpart during Friday’s Asian session amid concerns that U.S. President Donald Trump’s trade tariffs could impact key domestic export goods. However, yen bulls found some relief after the release of strong consumer inflation data from Tokyo, which keeps the door open for further interest rate hikes by the Bank of Japan (BoJ). Moreover, the BoJ’s Summary of Opinions indicated that rate hikes are still on the table, provided the economy and prices move in line with projections.

Additionally, the prevailing risk-off sentiment—fueled by Trump’s imposition of auto tariffs late Wednesday—was another factor supporting the safe-haven yen and briefly dragged the USD/JPY pair below the 151.00 level. Nonetheless, the emergence of some dip-buying in the U.S. dollar (USD) may provide support for the pair and help limit further downside. Furthermore, traders may refrain from taking directional bets ahead of the U.S. PCE Price Index release to gauge the Federal Reserve’s potential rate-cutting path.

Recommendation: BUY 151.00, SL 150.40, TP 151.75.