Event to watch out for today:
15:30 EET. USD – Unemployment Claims
22:00 EET. USD – Federal Reserve Chairman Jerome Powell Speaks
USDJPY:
The Japanese Yen (JPY) is struggling to register a significant recovery against its US counterpart and is languishing near its lowest level since July 30. Uncertainty over the Bank of Japan’s (BoJ) ability to raise interest rates further, as well as the prevailing risk-on environment, continues to undermine the safe-haven Yen. Added to this, rising US Treasury bond yields, boosted by the return of Republican Donald Trump as the 47th President of the United States (US), was another factor weighing on the low-yielding yen.
Meanwhile, the overnight drop prompted a verbal intervention from Japanese authorities, which may provide some support for the Yen and help limit losses. The US Dollar (USD), on the other hand, is holding just below Wednesday’s four-month high amid optimism over growth and inflation, which could limit the Federal Reserve’s (Fed) ability to cut interest rates. This could provide further encouragement for the USD/JPY pair ahead of the highly anticipated Federal Open Market Committee (FOMC) decision this Thursday.
Trading recommendation: Trade mainly with Buy orders from the current price level.
Origin: FreshForex
