Yen Gains Ground Against Weaker Greenback. Forecast as of 03.03.2025

Markets expect the Fed to cut interest rates by 70 basis points in 2025, while the Bank of Japan is considering rate hikes from 0.5% to 1.25%. This anticipated divergence in monetary policy will likely drag the USDJPY pair down. Let's discuss this topic and make a trading plan.Major Takeaways The yen has become sensitive to Japan's economic data. The yield differential defines the USDJPY pair's trajectory.  Lower US tariffs will likely weaken the US dollar. Short trades opened on a rebound