USDJPY:
The Japanese yen (JPY) rose against its US counterpart during Tuesday’s Asian session, although it lacked bullish confidence amid uncertainty over the timing of the Bank of Japan’s (BoJ) next interest rate hike. In addition to this, risk-on sentiment reflected in the overall positive tone in the equity markets may be contributing to the safe-haven yen’s decline.
That said, geopolitical risks and lower US Treasury yields could prevent a significant downside for the low-yielding yen. In addition, speculation that Japanese authorities may intervene to support the national currency may deter bears from aggressively betting on the yen. The focus will now shift to Japan’s consumer inflation data and global PMIs due out later this week.
Japan’s Economy Minister Ryosei Akazawa said Tuesday that “it is crucial to raise wages for all generations with an economic package.”
He also noted that he is “aiming for the cabinet to approve the economic package soon.”
At the time of writing the analysis, the USD/JPY pair is consolidating on the latest round of declines just above the 154.10 level, having lost 0.36% on the day.
Trade recommendation: Trade mainly with Sell orders from the current price level.
Origin: FreshForex
