USDJPY – Down
USDJPY:
On Tuesday, the Japanese yen (JPY) continued to decline in relative performance against the U.S. dollar for the second consecutive day, remaining near the multi-month low reached last week. The Bank of Japan (BoJ) last week indicated a possible delay in the next rate increase, while the Federal Reserve (Fed) signalled a more gradual pace of monetary policy easing next year. This has led to a moderation of expectations regarding a significant narrowing of the rate differential between the US and Japan, which is a key factor contributing to the weakening of the yen.
Equity markets have maintained a positive tone, which has led to a further decline in demand for the yen, which has remained virtually unchanged since the publication of the minutes of the October Bank of Japan meeting. This, along with a bullish US Dollar (USD) supported by the Fed’s hawkish stance, contributed to the USD/JPY pair maintaining a position above 157.00 during the Asian trading session. However, the latest inflation data from Japan has created the possibility of a BoJ rate hike in January or March. This could potentially deter those who are bearish on the JPY from making aggressive bets.
Trade recommendation: We follow the level of 157.00, if it is fixed above we consider Buy positions, if it bounces back we consider Sell positions.
Fund your account with cryptocurrency and you will receive up to 10% in balance on your first deposit. The additional funds will be used for trading, increasing trading volumes and helping you withstand drawdowns.
You may check other analytical reviews on FreshForex website. Source: freshforex.com.
