Events to watch out for today:
14:30 EET. USD – Core PCE Price Index
USDJPY:
The Japanese Yen (JPY) continues its consolidated move against its US counterpart on Thursday and remains near the three-month low reached earlier this week. Traders prefer to stay on the sidelines and refrain from aggressive directional bets ahead of the Bank of Japan’s (BoJ) policy decision later today. Meanwhile, expectations that the political situation in Japan may force expansionary fiscal policy and make it difficult for the Bank of Japan (BoJ) to raise interest rates further continue to act as a headwind for the yen.
Nevertheless, concerns over possible government intervention and cautious market sentiment provide some support for the safe-haven Yen. In addition, subdued US Dollar (USD) price action is keeping the USD/JPY pair in check during the Asian session. Meanwhile, bets on less interest rate cuts by the Federal Reserve (Fed) and concerns over the budget deficit following the US election continue to support US Treasury yields. This, in turn, favors the dollar bulls and should help limit upside for the low-yielding yen.
Trading recommendation: We follow the level of 153.00, if consolidated below, we consider Sell positions, if rebounded, we consider Buy positions.
Origin: FreshForex
