Events to pay attention to today:
15:15 EET. USD – ADP Non-Farm Employment Change
21:00 EET. USD – FOMC Meeting Minutes
USDJPY:
The Japanese Yen (JPY) is approaching a six-month low against the US dollar and appears vulnerable to an extension of its month-long downtrend amid uncertainty surrounding the timing of the Bank of Japan’s (BoJ) next rate hike.Furthermore, the recent widening of the yield differential between the US and Japan, underpinned by lower expectations for further rate cuts by the Federal Reserve (Fed), confirms a negative outlook for the low-yielding JPY in the near term. Nevertheless, a combination of factors could prevent bears from making new bets on the yen.On Tuesday, Japan’s Finance Minister Katsunobu Kato made a verbal intervention, which, along with concerns over US President-elect Donald Trump’s tariff plans, geopolitical risks and cautious market sentiment, may provide some support for the safe-haven yen.Investors may also prefer to wait for the publication of the FOMC meeting minutes. Meanwhile, the Fed’s ‘aggressive’ outlook continues to support the underlying bullish tone of the US Dollar (USD), helping the USD/JPY pair to hold above 158.00.
Trade recommendation: Trading mainly by Buy orders from the current price level.
Origin: FreshForex
