USDJPY:
The Japanese yen (JPY) appreciated against its US counterpart during Tuesday’s Asian session, recouping some of the previous day’s losses to reach the psychological 150.00 mark, or the lowest level since early August. Nonetheless, a notable appreciation of the yen appears unlikely in the near term, given the prevailing uncertainty surrounding the Bank of Japan’s (BoJ) monetary policy stance. Furthermore, the current risk sentiment may be a contributing factor to the decline in the value of the yen.
Meanwhile, market participants no longer anticipate another significant interest rate reduction by the Federal Reserve (Fed) in November, which has been a primary driver of the recent increase in US Treasury yields. This is maintaining the US dollar (USD) near its two-month peak and could further diminish the low-yielding yen. Consequently, any further decline in the USD/JPY pair could be viewed as a buying opportunity and is likely to remain constrained.
Trade recommendation: When the price level of 150.00 is broken, we take Buy positions. When rebounding from the price level of 149.40 we consider Sell orders.
Origin: FreshForex
