No significant events are expected today.

The USD/JPY pair continues to decline to the 143.55 level during Asian trading on Friday under pressure from a weak U.S. dollar (USD).

U.S. President Donald Trump stated on Wednesday that he would temporarily reduce tariffs on goods from dozens of countries, but raise tariffs on China to 125% from 104%. The looming threat of a recession both globally and in the U.S., driven by aggressive trade policy and uncertainty about future measures, is dragging the U.S. dollar down.

Traders expect the U.S. Federal Reserve (Fed) to resume interest rate cuts in June and likely lower the rate by a full percentage point by the end of the year.

Meanwhile, the Bank of Japan’s (BoJ) position differs significantly from the prospects of multiple rate cuts by the Federal Reserve. This, in turn, provides some support to the Japanese yen and acts as a headwind for the pair.

Early Friday, Japan’s Finance Minister Shunichi Kato stated that exchange rates should be set by markets, adding that excessive volatility in exchange rates negatively affects the Japanese economy.

Recommendations: SELL 143.00, SL 144.05, TP 141.55.