USDJPY – Down
Event to watch out for today:
16:45 GMT+3. USD – Composite PMI
USDJPY:
The Japanese yen (JPY) rises against its US counterpart during Tuesday’s Asian session and recovers most of the previous day’s losses to a fresh 34-year low, although any meaningful recovery still seems elusive. Investors remain on guard amid speculation that Japanese authorities will intervene to support the national currency, which in turn provides some support for the yen. However, the upside potential seems limited amid expectations that the rate differential between the US and Japan will persist for some time to come. The Bank of Japan (BoJ) has stated that it is in no hurry to normalize policy and is expected to wait until October before raising interest rates again. Investors, on the other hand, are cutting their bets on the Federal Reserve (Fed) cutting interest rates amid stagnant inflation. The Fed’s hawkish expectations, meanwhile, are supporting rising US Treasury yields and continue to support the US Dollar (USD). In addition, easing tensions in the Middle East should curb the safe-haven Japanese Yen and serve as a tailwind for the USD/JPY pair.
Trading recommendation: Trade in the 154.20-154.85 channel on bounces from the levels.
Our company provides an opportunity to earn income not only from your trading. By attracting clients within the affiliate program, you can get up to $30 per lot!
You may check other analytical reviews on FreshForex website. Source: freshforex.com.
