The Japanese Yen (JPY) continues to attract some safe haven flows amid tariff threats from US President-elect Donald Trump. In addition, the recent pullback in US Treasury yields following the appointment of Scott Bessent as US Treasury Secretary and expectations that he will rein in the budget deficit provides further support for the low-yielding JPY. This, along with weak US Dollar (USD) price action, led the USD/JPY pair to fall to a near three-week low around 152.700-152.650 during Wednesday's Asian session.
Nevertheless, uncertainty surrounding the Bank of Japan's (BoJ) next interest rate hike in December may deter traders from aggressively bullish bets on JPY. Meanwhile, easing geopolitical tensions amid a ceasefire agreement between Israel and Hezbollah may help limit the safe-haven JPY's gains. On the other hand, the US Dollar is likely to receive support from bets on slower interest rate cuts by the Federal Reserve (Fed), which could provide some support to the USD/JPY pair ahead of key US macroeconomic data released later today.
Trading recommendation: Trade predominantly with Sell orders from the current price level.
Nevertheless, uncertainty surrounding the Bank of Japan's (BoJ) next interest rate hike in December may deter traders from aggressively bullish bets on JPY. Meanwhile, easing geopolitical tensions amid a ceasefire agreement between Israel and Hezbollah may help limit the safe-haven JPY's gains. On the other hand, the US Dollar is likely to receive support from bets on slower interest rate cuts by the Federal Reserve (Fed), which could provide some support to the USD/JPY pair ahead of key US macroeconomic data released later today.
Trading recommendation: Trade predominantly with Sell orders from the current price level.
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More analytical information and promotions on FreshForex website cutt.ly/mw3aPjui
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.