USDJPY sees buying demand near 154.00 as investors consider Japan’s assistance as a temporary solution to maintain the weak Japanese yen.
The USDJPY pair regained intraday losses and climbed to 154.40 in Thursday’s European session. The asset is gaining traction as investors assess concerns about Japan’s anticipated involvement. In the forex market to keep the Japanese yen from falling further.
Masato Kanda, Japan’s Vice Finance Minister for International Affairs, stated on Wednesday. That officials would not rule out any solutions for dealing with excessive yen Moves, according to Reuters.
Investors regard Japan’s covert participation in the forex market as a temporary boost to the Japanese yen. But it will not cure its basic problem. Market players are skeptical of the Bank of Japan’s (BoJ) continued policy tightening, citing concerns about the wage rise spiral.
Japan’s National CPI statistics will influence market expectations for the BoJ’s rate rises.
Meanwhile, USDJPY investors are looking forward to the release of Japan’s National Consumer Price Index (CPI) data for March on Friday. The inflation figures will have a considerable impact on conjecture about the Bank of Japan’s interest rate forecast. Japan’s annual headline CPI. And measure excluding fresh goods are expected to have eased to 2.7% from 2.8% in February. Easing price pressures would have a detrimental influence on market expectations for further policy tightening by the BoJ.
US dollar has corrected despite expectations that the Fed will maintain interest rates higher for an extended period of time.
Market attitude remained buoyant despite Israel’s lack of fast response. to Iran’s invasion on its territory. S&P 500 futures have risen significantly in the European session. The US Dollar Index (DXY) falls dramatically to 105.85. Despite investors’ expectations that the Federal Reserve (Fed) will suspend rate decreases until later this year.
According to the CME FedWatch tool, traders have priced out rate cuts for the June and July meetings. With the September meeting being the earliest the Fed may begin cutting interest rates.
