Uncertainty about the Bank of Japan | 22 Octubre 2024

22 Octubre 2024, USD/JPY

Uncertainty about the Bank of Japan

USDJPY:

The Japanese yen (JPY) appreciated against its US counterpart during Tuesday's Asian session, partially recovering from the previous day's decline to its lowest level since late July. The recent verbal intervention from the Japanese authorities, coupled with a slight deterioration in global risk sentiment, have been instrumental in providing support to the safe-haven yen. However, the potential for gains for the yen is constrained by uncertainty surrounding the timing and pace of further interest rate hikes by the Bank of Japan (BoJ).

Meanwhile, concerns over the possibility of a widening budget deficit following the US presidential election on 5 November and bets on a less aggressive easing policy from the Federal Reserve (Fed) have pushed US Treasury yields to their highest levels in almost three months. This could result in significant appreciation of the Japanese Yen being contained. In addition, the underlying bullish tone on the US Dollar (USD) supports the prospects of some dip-buying in the USD/JPY pair.

Trade recommendation: Trading predominantly Buy orders from the current price level.

Up to $20 for each lot in real money - get a guaranteed income by connecting Cashback promotion!

David Johnson
Analyst of «FreshForex» company
¿De acuerdo con la revisión?
Opinión de los comerciantes:
Close
Iniciar sesión
Su navegador no admite cookies. Si la cookie está desactivada en su navegador de Internet, es posible que tenga problemas con la representación del área Personal. Cómo habilitar el soporte para cookies.