Uncertainty of USD/JPY | 04 tháng Ba 2024

04 tháng Ba 2024, USD/JPY

Uncertainty of USD/JPYUSDJPY:

The Japanese Yen (JPY) starts the new week with another dip in value. In the early Asian session, the Dollar-Yen pair went above the psychological level of 150.00. Bank of Japan (BoJ) Governor Kazuo Ueda reiterated on Friday that it is too early to declare victory over inflation. This comes amid a technical recession in Japan, which could force the BoJ to postpone its plan to tighten monetary policy. In addition, the prevalence of risk sentiment is undermining the safe-haven yen. However, investors seem convinced that the Bank of Japan will exit the negative interest rate regime if wage negotiations lead to a sharp increase in wages. This is keeping traders from aggressively bearish bets on the JPY.

Despite the US Dollar (USD) being weakened by Friday's disappointing macroeconomic data and less harsh comments from a number of influential Federal Reserve (Fed) officials, the USDJPY pair continues its rally. There will be no market-important economic data out of the US on Monday, so attention will turn to the release of the Tokyo Core CPI report on Tuesday. This week, investors will expect further cues from Fed Chairman Jerome Powell's semi-annual testimony to Congress on Wednesday and Thursday, as well as the US Non-Farm Payrolls (NFP) data on Friday.

Trading recommendation: Sell orders on the rebound from 150.50 and 150.70 levels

We offer you to work with the most popular and proven trading terminals - MetaTrader 4, MetaTrader 5, as well as WEB-terminal MetaTrader 5.

David Johnson
Analyst of «FreshForex» company
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