USDJPY:
The Japanese yen (JPY) failed to capitalise on the previous day’s recovery move against its US counterpart, attracting fresh sellers during the Asian session on Friday. The latest data, published on Thursday, revealed a contraction in business activity across Japan’s manufacturing and services sectors in October. Furthermore, the decline in Tokyo’s core inflation rate below the Bank of Japan’s (BoJ) 2% target has led to a reduction in expectations of additional rate hikes in 2024, placing some pressure on the yen.
Furthermore, the prevailing positive sentiment towards risk factors is eroding the JPY’s status as a safe haven currency. This, coupled with the emergence of some US dollar (USD) buying, is providing support for the USD/JPY pair near the mid-151.00 level. However, the recent verbal intervention by the Japanese authorities is helping to prevent a significant drop in the JPY and limit the currency pair’s decline. In light of the upcoming general election in Japan on Sunday, traders are monitoring the release of macroeconomic data from the US for short-term momentum amid ongoing political uncertainty.
Trade recommendation: We follow the level of 152.00, when fixing above it we consider Buy positions, when rebounding we consider Sell positions.
Origin: FreshForex
