USDJPY:
The Japanese yen (JPY) is retreating sharply after hitting a five-week high against its US counterpart during Tuesday’s Asian session. The Dollar-Yen pair has bounced more than 100 pips in the past hour from levels below the psychological 155.00 mark. US President Donald Trump’s statements on tariffs triggered a sharp recovery in the US dollar from the two-week low reached on Monday and proved to be the key driver of the yen’s intraday fall. Nevertheless, changing global risk sentiment is providing some support to the safe-haven yen.
In addition, rising expectations that the Bank of Japan (BoJ) will raise interest rates at its monetary policy meeting later this week are helping to limit the yen’s significant decline. Meanwhile, rising bets that the Federal Reserve (Fed) will lower borrowing costs twice this year have led to a recent decline in US Treasury yields. As a result, the narrowing rate differential between the US and Japan has kept traders from aggressive bearish bets on the yen and contained the USD/JPY pair’s intraday positive movement.
Trading recommendation: Watch the level of 155.00, if consolidated below consider Sell positions, if rebounded consider Buy positions.
Origin: FreshForex
