The yen may continue on a strengthening path | 28 tháng Tám 2024

28 tháng Tám 2024, USD/JPY

The yen may continue on a strengthening path

USDJPY:

The Japanese yen (JPY) declined slightly against the US dollar (USD) on Wednesday. However, conflicting outlooks from the Bank of Japan (BoJ) and the Federal Reserve (Fed) are putting downward pressure on the USD/JPY pair. Bank of Japan Governor Kazuo Ueda told parliament on Friday that the central bank may consider further interest rate hikes if its economic forecasts prove accurate.

The yen's decline may be limited by hawkish sentiment around the Bank of Japan (BoJ). Meanwhile, Fed Chairman Jerome Powell noted at a symposium in Jackson Hole that ‘the time has come for policy adjustment.’ However, Powell did not specify the timing and magnitude of potential rate cuts.

In addition, San Francisco Fed President Mary Daly said in an interview with Bloomberg TV on Monday that ‘it's time’ to start cutting interest rates, probably by a quarter of a percentage point.

According to the CME FedWatch Tool, markets fully expect the Federal Reserve to cut rates by at least 25 basis points (bps) at its September meeting.

Trading recommendation: Trade predominantly with Sell orders from the current price level

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David Johnson
Analyst of «FreshForex» company
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