Key events today:

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

The Japanese yen (JPY) is weakening during the Asian trading session on Friday, driven by growing investor concerns over the potential economic impact of the retaliatory tariffs imposed by the administration of U.S. President Donald Trump. Increasing uncertainty surrounding the outlook for global trade has led market participants to reassess their expectations for the Bank of Japan’s (BoJ) monetary policy. Specifically, fears of slowing global growth have caused traders to lower the probability of a more aggressive rate hike by the BoJ, putting downward pressure on the yen.

Nevertheless, persistent signs of rising inflation in Japan — including increases in consumer prices and wages — suggest that the BoJ may stay on course for a gradual tightening of its monetary policy. This could support the Japanese currency in the medium term, particularly if external factors do not lead to a significant economic downturn.

Another supportive factor for the yen remains the broader decline in risk appetite in financial markets. Escalating trade tensions between major economies are prompting investors to seek refuge in traditionally safe assets like the Japanese yen. Meanwhile, the ongoing weakness of the U.S. dollar (USD) is also playing a crucial role. Expectations that the newly imposed tariffs could trigger an economic slowdown in the U.S., along with growing bets that the Federal Reserve may soon resume rate cuts, are putting pressure on the dollar and, consequently, supporting the yen.

Recommendation: SELL 145.80, SL 146.40, TP 144.80.