08 May 2024, USD/JPY
USDJPY:
The Dollar-Yen pair traded in positive territory for the third consecutive day around 155.00 during the early Asian session on Wednesday. The US rate hike narrative continues to support the US Dollar (USD) and strengthen the pair. Nevertheless, further moves by the Japanese authorities to prevent the current weakening of the Japanese Yen may limit the pair's near-term upside.
Recent remarks by Minneapolis Fed President Neel Kashkari have contributed to the USD's gains. On Tuesday, Kashkari said that the Fed may take a wait-and-see stance on interest rates and open the door for a hike in the federal funds rate if inflation does not weaken. Last week, a committee of the US Federal Reserve (Fed) decided to keep the benchmark rate unchanged in the range of 5.25-5.50 percent. The federal funds rate will remain in this range from July 2023. Fed policymakers emphasized that more clarity on the inflation outlook will be needed to lower borrowing costs.
The Bank of Japan (BoJ) raised interest rates in March for the first time in 17 years, but it still lags its global peers, especially the Fed. The interest rate differential between Japan and the US has put selling pressure and made the yen less attractive.
Bank of Japan Governor Kazuo Ueda noted on Tuesday that he will closely monitor the weakening yen, and the Japanese central bank will consider taking policy action if the yen falls further against the U.S. dollar (USD). Further possible currency intervention by the Japanese authorities is likely to limit the yen's decline for the time being.
Trading recommendation: Watch the level of 155.00, trading predominantly on Buy.
FreshForex offers a wonderful 300% bonus on every deposit of $100 or more, giving you the opportunity to increase your trading volumes!
en 
id 
ar 
ru 
vn 
es 
pt 
kz 
ua 
tj 
uz 
az 
ms 