USDJPY is trading higher at 146.60.
The USDJPY pair maintained its winning run that began on Friday, trading around 146.60 throughout Tuesday’s Asian session. Despite market caution following the moderate employment statistics from the United States (US) and the prospect of no interest rate change by the US Federal Reserve (Fed) at the September meeting, the pair is seeing upward support.
Furthermore, the USDJPY pair’s upward trend may find support as investors continue to weigh the possibility of a recession. The Fed will raise interest rates by a quarter point (bps).
Japan’s Household Spending statistics revealed the worst dip since February 2021.
However, Japan’s poor year-on-year Household Spending Data for July, released on Monday, may be adding to the Japanese Yen’s (USDJPY) decline. The data indicated the biggest drop since February 2021, with the actual amount recording at -5.0%, far worse than the expected -2.5%. The number for June was -4.2%. As a result, the Bank of Japan (BoJ) may refrain from making any immediate changes to its supportive monetary policy.
The US Dollar (USD) is gaining ground as investors continue to price in the possibility of a rate rise.
US Dollar Index (DXY), which measures the performance of the US dollar against six other major currencies, was hovering at 104.10. The US Dollar (USD) was supported by both solid employment growth in August and the revival in manufacturingTreasury yields in the United States.
USDJPY players looking forward ISM, PMI.
USDJPY players are looking forward to the announcement of the August ISM Services PMI on Wednesday..
