No significant events are expected today.

The Japanese yen (JPY) is attracting some intraday sellers after the summary of opinions from the Bank of Japan’s (BoJ) July meeting showed that policymakers remain concerned about the potential negative impact of US tariff hikes on the domestic economy. This adds to uncertainty regarding the likely timing of the BoJ’s next rate hike. Furthermore, the generally positive risk sentiment is undermining the yen’s position as a safe-haven currency, which in turn is helping the USD/JPY pair to rebound from the 146.70 support zone during the Asian session on Friday.

However, investors appear convinced that the BoJ will raise interest rates before the end of the year. In contrast, traders now see a greater likelihood that the US Federal Reserve (Fed) will cut borrowing costs at its September policy meeting. This, in turn, should limit any significant recovery of the US dollar (USD) from the two-week low reached on Thursday and help cap deeper losses for the lower-yielding yen. Therefore, it would be prudent to wait for strong follow-up buying before confirming that the USD/JPY pair has bottomed out in the near term.

Recommendations: SELL 147.05, SL 147.50, TP 146.15.