No significant events are expected today.

The Japanese yen (JPY) faced heavy selling pressure during the Asian session on Tuesday, retreating from the six-week high reached the previous day against its American counterpart. Investors remain concerned about the potential economic impact of U.S. President Donald Trump’s trade policies, which, in turn, weaken the yen. Additionally, a strong rebound in U.S. Treasury yields has further discouraged demand for the low-yielding yen. The recovery of the US dollar adds additional pressure, diminishing the yen’s attractiveness.

However, a significant depreciation of the yen seems unlikely amid expectations that the Bank of Japan (BoJ) will continue to raise interest rates. Conversely, the Federal Reserve (Fed) is expected to cut interest rates twice this year, which could act as a headwind for U.S. bond yields, the dollar, and the currency pair.

Investors are closely monitoring developments, including upcoming speeches from Fed and BoJ officials, as well as key economic data releases that may influence the future trajectory of USD/JPY.

Recommendation: Predominantly trading Sell orders from the current price level.