USDJPY struggles as the BoJ takes a Cautious approach to keeping Monetary conditions Accommodating.
USDJPY remained stable, Hovering around 151.40 in the early European hours of Friday. The Tokyo Consumer Price Index (YoY) rose 2.6% in March, following a 2.5% increase in February. Meanwhile, the Core Tokyo CPI rose 2.9% year on year, down from a 3.1% increase in February.
Japanese Finance Minister Shunichi Suzuki spoke on Friday. Underlining the need of stable currency movements that are Consistent with Economic fundamentals. Moreover He voiced concern over the fast changes in foreign exchange (FX). Markets, Attributing speculative behavior to these swings. Suzuki noted that authorities are actively monitoring FX developments with a great feeling of urgency. And are ready to take the required actions to handle disorderly FX swings.
Japanese Prime Minister Fumio Kishida said Thursday. That it was appropriate for the central bank to “maintain accommodative monetary conditions.” Kishida also stated. That the government would continue to collaborate with the Bank of Japan (BoJ) to enable wage increases and steer the economy away from deflation. The Japanese yen (JPY) is anticipated to experience hurdles as a result of the Bank of Japan’s cautious approach to maintaining accommodating monetary conditions, which has supported the USDJPY pair.
The US dollar’s strength is reinforced by aggressive Fed pronouncements.
The US Dollar Index (DXY) gains, approaching 104.60, as recent data implies annualized economic growth in the United states consumer spending drives the economy of the United States. Furthermore In the fourth quarter of 2023, the US Gross Domestic Product (GDP) Annualized increased by 3.4%, above market estimates of a 3.2% gain. The US Gross Domestic Product Price Index increased by 1.7%, as expected for Q4.
Moreover A Federal Reserve (Fed) official’s aggressive views bolstered the greenback. Given the robust inflation statistics, Fed Governor Christopher Waller warned on Wednesday that interest rate decreases could be delayed.
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