USDJPY – Down
Event to pay attention to today:
15:30 EET. USD – Consumer Price Index
USDJPY:
Uncertainty over how soon the Bank of Japan may raise rates is causing the Yen bulls to remain cautious. The dollar maintains its recent gains and provides support to USD/JPY ahead of the US CPI report.
The Japanese Yen (JPY) is rising during Wednesday’s Asian session as a stronger Producer Price Index (PPI) from Japan keeps the possibility of a Bank of Japan (BoJ) interest rate hike in December alive. Nevertheless, the rise lacks bullish confidence amid skepticism over the BoJ’s intention to further tighten monetary policy. In addition, a further recovery in US Treasury yields is helping to limit the rise of the low-yielding yen.
In addition, the recent rise in the US Dollar (USD) to a near one-week high reached on Tuesday should help limit the decline in the USD/JPY pair. Traders should refrain from aggressive directional bets and wait for the release of US consumer inflation data. The crucial U.S. data will provide insight into the prospects for a rate cut by the Federal Reserve (Fed) and provide some meaningful impetus ahead of key central bank events next week.
Trade recommendation: Watch the level of 150.50, when fixing below consider Sell positions, when rebounding consider Buy positions.
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