Event to watch out for today:
14:30 EET. USD – GDP Volume Change
USDJPY:
The Japanese yen (JPY) is rising against its US counterpart during Wednesday’s Asian session amid concerns that the authorities will intervene in the market to support the domestic currency. However, the rise is not bullish amid expectations that the loss of the parliamentary majority by Japan’s ruling coalition could make it difficult for the Bank of Japan (BoJ) to further tighten monetary policy. In addition, the optimistic mood in the market is seen as another factor preventing the yen from strengthening.
Traders are also reluctant to make aggressive directional bets and may prefer to take a wait-and-see stance ahead of the BoJ’s important decision on Thursday. Investors will also face important macroeconomic data from the US this week – the advance Q3 GDP report today, the Personal Consumption Expenditures (PCE) price index on Thursday and the Non-Farm Payrolls (NFP) report on Friday. All of these will play a key role in influencing the price dynamics of the US Dollar (USD) in the near term and will give a significant impetus to the USD/JPY pair.
Trading recommendation: Trade mainly with Buy orders from the current price level.
Origin: FreshForex
