USDJPY:
The Japanese Yen (JPY) attracts fresh sellers at the start of the new week and remains near the multi-month low reached against the US currency in December amid a dovish outlook from the Bank of Japan (BoJ). In addition, the prevalence of risk sentiment is undermining the safe-haven yen. Furthermore, the bullish US Dollar (USD), backed by hawkish signals from the Federal Reserve (Fed) and optimism over US President-elect Donald Trump’s expansionary policies, acts as a tailwind for the USD/JPY pair.
Meanwhile, data released earlier this Monday showed that business activity in Japan’s service sector rose for the second consecutive month in December. This came against the backdrop of rising inflation in Japan’s service sector and reinforces speculation of a rate hike by the Bank of Japan in January. In addition, geopolitical risks and concerns over Trump’s tariff plans are keeping yen bears from aggressive bets. Moreover, speculation that Japanese authorities may intervene to support the national currency should help limit deeper JPY losses.
Trading recommendation: Trade predominantly with Buy orders from the current price level.
Origin: FreshForex
