USDJPY approaches key trendline as traders await Bank of Japan decision

The US dollar has weakened slightly due to lower inflation data, raising expectations for a potential rate cut. However, President Trump announced plans to impose 25% tariffs on Canada and Mexico, which helped the dollar recover most of its losses. The Japanese yen remains strong as the market anticipates a 25 basis point rate hike from the Bank of Japan. This expectation follows comments from BoJ Governor Ueda, contributing to a risk-off sentiment in the market. In technical analysis, USDJPY has broken out of recent consolidation and is nearing a major trendline. Traders are watching for potential price movements, with buyers targeting 160.00 and sellers looking for a drop to 149.00.