USDJPY:
The Japanese yen (JPY) is declining against its US counterpart during the Asian session on Wednesday, although it remains near the one-month peak reached the previous day. The yen continues to receive support from growing expectations that the Bank of Japan (BoJ) will raise interest rates on Friday. This is strongly at odds with forecasts that the Federal Reserve (Fed) will cut rates twice this year, keeping the US Dollar (USD) near a two-week low and contributing to the USD/JPY pair’s decline.
In addition, uncertainty surrounding US President Donald Trump’s potential tariffs may be contributing to the yen’s strength. Nevertheless, traders seem reluctant to agree and may prefer to move to the sidelines ahead of the highly anticipated two-day Bank of Japan monetary policy meeting, which begins on Thursday. Its outcome will play a key role in influencing JPY price dynamics in the near-term and provide meaningful momentum to the USD/JPY pair. Nevertheless, the aforementioned fundamental background seems to be leaning in favour of the JPY bulls.
Trade recommendation: Watch the level of 155.30, when fixing below consider Sell positions, when rebounding consider Buy positions.
Origin: FreshForex
