No major events are expected today.

The Japanese yen (JPY) attracts some sellers during the Asian session on Friday, reversing the previous day’s positive movement against its American counterpart amid a slight improvement in global risk sentiment. Positive comments from the White House and Canadian officials, as well as reports that there will be enough Democratic votes to avoid a U.S. government shutdown, boost investor confidence. This, in turn, leads to a moderate recovery in U.S. stock futures and becomes a key factor undermining the JPY’s status as a “safe haven” currency.

However, a significant decline in the yen still seems unlikely amid growing confidence that the Bank of Japan (BoJ) will raise interest rates again. Moreover, hawkish expectations from the Bank of Japan have recently led to a sharp narrowing of the interest rate differential between Japan and other countries, which should limit losses for the low-yielding yen. Additionally, bearish sentiment surrounding the U.S. dollar (USD) due to expectations that the Federal Reserve (Fed) will cut rates a few more times this year may help cap the USD/JPY pair’s gains.

Recommendations: Buy 148.20, SL 147.20, TP 149.20.