USDJPY fluctuates around 150.00 as long as Japan’s concerns about intervention persist.
The USDJPY pair settles in close proximity to the pivotal resistance level of 150.00. Investors appear optimistic about the asset’s upside potential. Because they believe the Federal Reserve (Fed) will maintain its strict interest rate policy for some time. If not raise rates further.
Amidst tensions in the Middle East, S&P 500 futures saw losses during the European session. Suggesting a risk-off attitude. On Friday, US stocks saw significant selling due to geopolitical unrest. And technological earnings summary. Ahead of important economic data, the yield on the US 10-year Treasury increased to 5%.
The US annualized GDP is reported to be 4.1% higher even though the Fed has raised interest rates.
The US Dollar Index (DXY) steadies above 106.00 as USDJPY investors turn their attention to the US GDP data for the third quarter. Which is scheduled for release on Thursday. Notwithstanding the Fed’s hike in interest rates. The annualized GDP data is reported to be higher at 4.1%.
In light of rising long-term US Treasury yields, Fed Chair Jerome Powell supported a stable interest rate policy. According to Jerome Powell, the current state of the financial system is being impacted by rising yields. In an interview on Friday, Patrick Harker, the president of the Philadelphia Fed Bank, advocated keeping interest rates unchanged despite the weakening economy.
The Japanese Yen won’t be able to maintain stability for much longer despite Japan’s covert intervention.
Regarding the Japanese Yen(USDJPY), investors anticipate action from the Japanese authority. In the foreign exchange market to prop up the declining value of the yen. Investors are hoping that the Bank of Japan’s (BoJ) decision to maintain its expansionary policy stance will prevent the stealth intervention from providing longer term stability to the Japanese Yen.
