USDJPY:
The Japanese yen (JPY) continues its sideways consolidated price movement in Tuesday’s Asian session and remains within striking distance of its lowest since the beginning of the year against its US counterpart. Overnight comments from Japan’s Deputy Finance Minister for International Affairs Masato Kanda intensified speculation that the authorities are ready to take action and are going to use market operations to support the local currency. This was a key factor that provided some support to the Japanese Yen and acted as a headwind for the USD/JPY pair.
Nevertheless, uncertainty over the Bank of Japan’s (BoJ) next steps is holding back the JPY bulls from aggressive bets. The US Dollar (USD), on the other hand, continues to receive support from optimism about economic growth in the US, which could cause the Federal Reserve (Fed) to keep interest rates on hold longer.
Trading recommendation: Trade in the 151.00-151.50 channel on a rebound from the levels.
Origin: FreshForex
