USDJPY:
The Japanese Yen (JPY) has attracted some intraday sellers after reaching a near one-month high against its US counterpart during the Asian session on Friday. However, a significant decline in the Yen seems unlikely amid rising bets that the Bank of Japan (BoJ) will raise interest rates again next week, as recent remarks from BoJ Governor Kazuo Ueda and Deputy Governor Ryozo Himino have confirmed. This, along with a softer tone on risks, favours the Yen bulls.Meanwhile, falling inflation in the US suggests that the Federal Reserve (Fed) may not rule out the possibility of a rate cut before the end of this year. This has led to a sharp decline in US Treasury bond yields since the start of the week, and as a result, a narrowing of the yield differential between the US and Japan could support the Japanese Yen. The outlook for a Fed rate cut has also contributed to the US Dollar (USD) remaining near its weekly low, which should help to curb recovery attempts in the USD/JPY pair.
Trade recommendation: We are watching the level of 155.00, trading mainly with Sell orders.
Origin: FreshForex
