No significant events are expected today.

The pair has dropped to 150.10–150.20 as demand for the yen remains supported by a combination of a weaker US dollar and signals from the Bank of Japan about its focus on conditions for further policy normalization. Comments from the regulator have revived expectations that Japan’s monetary policy will gradually tighten as inflation and wages stabilize. Against this backdrop, external capital inflows into yen-denominated assets have slightly increased, leading USDJPY to move lower.

The stability of Japan’s financial markets and the tendency of local investors to reduce currency hedges amid lower US yields also weigh on the pair. Market data earlier indicated that USDJPY dynamics are sensitive to expectations regarding the Bank of Japan’s next steps and overall risk appetite: during periods of systemic risk, the yen traditionally attracts safe-haven inflows.

On the US side, the dollar is pressured by concerns over a prolonged budget crisis and dovish signals from the Federal Reserve, which reduce Treasury yields and the dollar’s attractiveness. As a result, the base scenario suggests continued pressure on USDJPY, with potential for further decline toward 149.25 under a neutral news backdrop.

Recommendations: SELL 150.10, SL 150.30, TP 149.25