Yen maintains bearish potential | 09 Tháng hai 2024

09 Tháng hai 2024, USD/JPY

Yen maintains bearish potential

USDJPY:

During the Asian session on Friday, the Japanese yen (JPY) remained stable against the US dollar, consolidating the previous day's significant losses and reaching a new low for the year. Bank of Japan (BoJ) Deputy Governor Shin'ichi Uchida stated on Thursday that aggressive policy tightening is unlikely, even after the exit from negative interest rate policy. The safe-haven yen continues to be supported by recent bullishness in stock markets. The USD stands near its highest level in nearly three months, which is supporting the USD/JPY pair.

However, uncertainty over the path of the Federal Reserve rate cut is keeping USD bulls from aggressive betting. Moreover, the anticipation that major Japanese corporations may provide substantial salary hikes this year will maintain consistent and stable inflation. This will enable the Bank of Japan to shift away from excessively confident monetary policy settings and restrict yen depreciation. Traders may wait for next week's release of the latest US consumer inflation data to gain insight into future Fed policy decisions. This information will play a key role in influencing USD price dynamics in the near term and determining the next stage of USD/JPY directional movement.

Trade recommendation: Trading sell orders from the current price level

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David Johnson
Analyst of «FreshForex» company
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