USDJPY is aiming to extend its rise to 150.00 as the Bank of Japan maintains its dovish interest rate stance.
The USDJPY pair is projected to maintain its upward movement toward the critical resistance of 150.00. Despite a less confident resistance near 149.20.
The asset has benefited from Bank of Japan (BoJ) Governor Kazuo Ueda’s dovish interest rate forecast. And a strong US Dollar amid a cautious market attitude.In London session , S&P 500 futures suffered huge losses. As investors concerned about the repercussions of increasing interest rates by the Federal Reserve (Fed). Which is projected to remain elevated for a longer period.
Worries of a worldwide downturn, the US economy remains resilient thanks to low inflation and favorable labor market conditions.
The US Dollar Index (DXY) has risen to a 10 month high above 106.20. As Fed officials advocated for additional tightening of monetary policy to guarantee price stability. Unlike worries of a worldwide downturn.
Furthermore The US economy remains resilient thanks to low inflation and favorable labor market conditions. While US inflation has been moderating, healthy consumer spending might cause inflation to rise. This might persuade Fed policy makers to approve another rate rise.
USDJPY Investors are looking forward to the US Durable Goods Orders data.
Meanwhile, USDJPY investors are looking forward to the August Durable Goods Orders data from the US. Durable goods Orders are expected to fall at a softer 0.4% rate in August. Compared to a 5.2% drop in July. Manufacturing in the United StatesThe sector is already in a fragile state. The US PMI has been falling for a long time. And a poor new order book suggests that manufacturing activity will continue to fall.
BoJ Ueda believes that the BoJ monetary policy should be extended.
On the Japanese Yen(USDJPY), BoJ Ueda believes. That the BoJ policy should be extended because 2% inflation is not in sight. According to Kazuo Ueda, a slight rise in inflation by wage growth would be a significant triumph for the central bank.
Moreover Japan Finance Minister Suzuki stated. That Japan is at a cross roads in terms of demand and wage.
Furthermore japan minister stated that more FX fluctuations are not desired. And he is closely monitoring FX movements.
