The USDJPY pair tumbled to near 156.00 late Tuesday, with the Japanese Yen strengthening amid expectations that the Bank of Japan will tighten its monetary policy further in its July monetary policy meeting. Economists expect that the BoJ will raise interest rates further by 10 basis points, prompted by steady inflation above the bank’s target … Read more
The USDJPY pair extended its recovery to 156.00 in Friday’s European trading as the Dollar rebounded strongly after the Fed ruled out expectations of rate cuts, despite an expected decline in the US Consumer Price Index data for April.
The USDJPY pair dropped to 155.50 in early European trading as the US Dollar continues to weaken. Investors are confident that the Federal Reserve will start reducing interest rates from September. The US Consumer Price Index data for April is awaited to provide insight into the interest rate outlook. Economists expect Japan’s Q1 Gross Domestic Product to show a contraction.
The U.S. dollar-yen pair is trading around 155.30 in European markets on Wednesday, with the possibility of the Federal Reserve prolonging higher interest rates contributing to the Greenback’s strength. President Kashkari’s remarks suggest anticipation of unchanged interest rates for a considerable period, while interventions by Japanese authorities to support the JPY have only provided temporary relief.
The Japanese Yen is having one of its best weeks in history against the US Dollar, with the USDJPY pair dropping from roughly 160.00 to 153.00 due to interventions. The US Dollar Index is holding around 105.00, and there is speculation on how long the effects of the interventions will last. Japanese companies are facing issues due to the weak Yen, and tourism is boosting local inflation. The US Jobs Report data for April is expected to influence the market on Friday. The rate differential between the US and Japan is not likely to sustain the JPY appreciation.
The USDJPY pair was trading at 152.95 with a modest loss of 0.17% late Friday. Despite a drop in consumer confidence in the US, the Greenback is set to close a winning week due to hot inflation data reported. The US Bureau of Labor Statistics revealed a rise in inflation, with the Consumer Price Index rising to 3.5% year-over-year in March. Hot inflation figures fueled hawkish bets on the Federal Reserve and US Treasury yields, benefiting the USD during the week. The USD may see further upside if data validates bets, with Retail Sales figures from March set to be released next Monday. On the technical analysis side, the USDJPY pair shows a sustained trend in positive territory on the Relative Strength Index (RSI) and a bullish posture above the 20-day, 100-day, and 200-day Simple Moving Average (SMA).