Japanese yen is struggling to attract buyers amid uncertainties about future BoJ rate hikes.

The Japanese Yen (JPY) saw some intraday selling on Tuesday in response to data showing that Japan’s real wages dipped in August following two months of rises. Furthermore, household expenditure fell during the reported month, raising concerns about the strength of private consumption and a long-term economic recovery. This comes on top of stark comments on monetary policy from Japan’s incoming Prime Minister, and deepens doubt about the Bank of Japan The Bank of Japan intends to raise interest rates even more.

Hopes for a Hezbollah-Israel ceasefire undercut the JPY’s safe haven status.

The news of a probable Hezbollah-Israel truce weakened demand for the safe-haven JPY and helped the USDJPY pair halt its minor slide from the highest level since August reached on Monday.

However, continued speculation that Japanese authorities may intervene to boost the native currency prevent JPY bearish from making aggressive wagers. Apart from that, low US Dollar (USD) demand limits any major upside for the USDJPY pair, resulting in range-bound price action during the Asian session on Wednesday. Investors appear hesitant and prefer to remain on the sidelines ahead of the release of the September FOMC meeting minutes later today. This, combined with the US Consumer Price Index (CPI) and the On Thursday and Friday, the Producer Price Index (PPI) will influence USD price dynamics and define the next leg of the currency pair’s directional move.

Daily Market Movers: Japanese Yen continues on the defensive amid uncertainties over the BoJ rate hike.

According to government data issued on Tuesday, real wages in Japan, the world’s fourth-largest economy, dipped 0.6% and household spending fell 1.9% in August compared to the same month last year.

This, combined with comments from Japan’s Prime Minister Shigeru Ishiba that the country is not in a position for more rate hikes, might disrupt the Bank of Japan’s rate-hike plans in the coming months.

On Tuesday, Israeli forces launched further raids into southern Lebanon, boosting the There was a chance of a full-fledged war in the Middle East, but anxieties were alleviated after Iran-backed Hezbollah agreed to a negotiated cease-fire.

Japan’s Finance Minister, Katsunobu Kato, stated earlier this week that the government would watch how rapid currency movements could affect the economy.

Japan’s Finance Minister, Katsunobu Kato, stated earlier this week that the government would watch how rapid currency movements could affect the economy and take measures if necessary.

The Reuters Tankan monthly poll revealed on Wednesday that Japanese manufacturers became more optimistic about business conditions in October, with the confidence index rising from 4 in September to 7 this month.

However, the study found that Japanese manufacturers were concerned about the pace of China’s economic recovery, while the service sector’s attitude improved, reflecting Japan’s mixed economic conditions.

The US dollar extends its consolidative price movement around a seven-week high. notwithstanding decreased odds of a more aggressive policy easing by the Federal Reserve, and has minimal impact on the USDJPY pair.

Traders are now anticipating the release of the September FOMC meeting minutes for some impetus, ahead of the US Consumer Price Index and Producer Price Index on Thursday and Friday, respectively.