USDJPY is approaching a 15-year high, driven by Powell words
The USDJPY is up for the fifth day in a row, flirting with the 151.00 level. Fueled by rising US Treasury yields and Fed Chair Powell’s inflation concerns.
Following the University of Michigan statistics, market sentiment moves. Reflecting reduced confidence in the economic outlook and ongoing inflation fears.
Moreover the Japanese Yen’s continuing slide is moderated by Ministry of Finance intervention warnings. As officials underline the importance of Forex movements aligning with economic fundamentals.
Furthermore The USDJPY continues its five-day climb. Trading above the 151.00 mark but falling short of the 15-year high set on October 31 at 151.72. A rise in the 10-year US Treasury bond yield following a poor 30-year US Treasury bond yield Bond auctions. And Fed Chair Jerome Powell’s hawkish retreat are positives for the major. At the time of writing, the pair is trading at 151.50′, with a 0.11% gain:
The yen is under pressure as the USDJPY approaches its top in October, with US bond yields and Fed policies in the spotlight.
Market investors continued to evaluate Powell’s remarks. Which indicated that the US central bank is concerned about inflation. And will hike interest rates if necessary. Concerns that the policy is not restrictive enough continue to grow. As a result, the USDJPY strengthened, as did US bond yields.
Meanwhile, a sudden improvement in market mood has seen US bond yields fall somewhat. Following data from the University of Michigan (UoM) indicates that Americans are less confident about the economy. As the indicator fell from 63.8 to 60.4. In terms of inflation expectations, upside risks persist, with respondents expecting prices to rise 4.4% in a year and 3.2% in five years.
On the Japanese front, the USDJPY remains capped due to government intervention threats. Specifically from the Ministry of Finance (MoF). Officials had been warning that additional Yen devaluation and volatility could lead to action from the authorities. They continue to argue that the Forex market should reflect fundamentals.
Moreovee The USDJPY pair will be influenced by US Retail Sales and inflation data in the coming week. The calendar in Japan would include the release of GDP, Industrial Production, and the Trade Balance.
