USDJPY:
The Japanese yen (JPY) remains in a disadvantageous position after data released on Friday during the Asian session showed that core consumer prices in Japan rose at their slowest pace in nine months in August. This compounds domestic political uncertainty and gives the Bank of Japan (BoJ) additional reasons to delay raising interest rates. In addition, another factor undermining the Japanese yen’s position as a safe-haven currency is the general optimism in the stock markets.
However, yen bears seem reluctant to make aggressive bets and prefer to wait for the results of the Bank of Japan’s two-day monetary policy meeting. Meanwhile, the US dollar (USD) is seeking to strengthen its position after a sharp recovery from its lowest level since February 2022 following the FOMC meeting, acting as a tailwind for the USD/JPY pair, which reached a one-and-a-half-week high on Thursday. However, bets that the BoJ will stick to its policy normalization course and the prospect of further Fed rate cuts could limit the major currency’s gains.
Trade recommendation: BUY 148.15, SL 147.65, TP 149.35
Origin: FreshForex
