Event to pay attention to today:
17:00 EET. USD – JOLTs Job Openings
USDJPY:
The Japanese yen is attracting some market action on Tuesday but lacks support.
Rising bets on another Bank of Japan rate hike in December are helping to limit the yen’s decline.
Geopolitical risks, Trump’s tariff threats and lower U.S. bond yields favor the yen bulls.
The Japanese yen (JPY) is declining against its U.S. counterpart during Tuesday’s Asian session and is shifting the USD/JPY pair away from its lowest level since October 16, reached the previous day. However, speculation that the Bank of Japan (BoJ) may raise interest rates again in December should limit the yen’s significant decline. In addition, threats of trade tariffs by U.S. President-elect Donald Trump, as well as ongoing geopolitical risks, could support the yen.
Meanwhile, the recent decline in US Treasury yields has not helped the dollar to strengthen after an overnight rebound from multi-month lows and could further support the low-yielding yen. This, in turn, calls for some caution before making aggressive bullish bets on the USD/JPY pair. In addition, traders may prefer to wait for additional signals that the Federal Reserve (Fed) will be cutting rates.
Trade recommendation: Watching the level of 149.30, trading mainly with Buy orders
Origin: FreshForex
