The Japanese yen (JPY) failed to capitalize on a modest recovery against its U.S. counterpart from its lowest level since 1990 and declined during the Asian session on Thursday. Speculation that Japanese authorities may soon intervene in markets to support the nation’s currency prompted traders to ease their bearish bets on the yen on Wednesday. Nevertheless, the Bank of Japan’s (BoJ) cautious approach and the uncertain outlook for future rate hikes have kept the yen from strengthening further.
The US Dollar (USD), on the other hand, stands near a one-month peak amid hawkish remarks from Federal Reserve Governor Christopher Waller on Wednesday. This turned out to be another factor that helped the USD/JPY pair to attract some dip buying, although the upside seems limited as traders may wait for new signals regarding the Fed’s policy course.
Trading recommendation: Trade predominantly with Buy orders from the current price level
Origin: FreshForex
