USDJPY:
The Japanese Yen (JPY) is declining against its US counterpart and reversing part of Friday’s recovery from its lowest level since July 23 following remarks from Bank of Japan (BoJ) Governor Kazuo Ueda. Ueda gave no clues regarding a rate hike in December, which seemed to disappoint investors and put pressure on the yen. In addition, the overall positive tone on risks is seen as another factor undermining safe-haven yen demand.
Nevertheless, speculation that the Japanese authorities may intervene in the FX market to support the local currency has kept bears from aggressively betting on the yen. This, along with weak US Dollar (USD) price action, could serve as a headwind for the USD/JPY pair and contain the upside. Traders may also prefer to wait on the sidelines and await Bank of Japan Governor Ueda’s press conference at 04:45 GMT for meaningful momentum.
Trading Recommendation: Watch the level of 155.00, if the pair consolidates above, consider Buy positions, if the pair rebounds, consider Sell positions.
Origin: FreshForex
