Unlikely strengthening of the Japanese yen | 03 4月 2024

03 4月 2024, USD/JPY

Unlikely strengthening of the Japanese yen

Events to watch out for today:

17:00 EET. USD - ISM Services Business Activity Index

19:10 EET. USD - Federal Reserve Chairman Jerome Powell to deliver speech

USDJPY:

Investors remain on guard amid the possibility of Japanese authorities' intervention to prevent a destabilizing fall of the national currency. This, along with a general weakening of sentiment in stock markets, proved to be the key factor that provided some support to the safe-haven Yen.

The US Dollar (USD) is consolidating on a pullback from a five-month high and is contributing to the soft supply tone around the USD/JPY pair. Nevertheless, any significant Yen appreciation seems unlikely amid dovish statements from the Bank of Japan (BoJ) signaling that the next rate hike is imminent. On the contrary, markets continue to discount bets that the Federal Reserve (Fed) will cut interest rates in June.

Expectations that the gap between U.S. and Japanese interest rates will remain wide may further deter JPY bulls from aggressive betting, which in turn will help limit the USD/JPY pair's decline. Investors will now turn their attention to the economic agenda in the US, where the ADP private sector employment report and the ISM services PMI will be released. These data, as well as speeches by influential FOMC members, including Fed Chairman Jerome Powell, should provide fresh impetus.

Trading recommendation: Trade predominantly with buy orders from the current price level

Connect 101% under drawdown and trade with double deposit! Bonus funds will help you increase your profits or withstand a sudden drawdown!

David Johnson
Analyst of «FreshForex» company
同意该评论吗?
交易员的评论:
Close
授权
您浏览器禁用cookie 文件. 在此情况下, 私人空间显示不正常. 如何启动cookie 文件的支持.
manager photo manager photo
Online-support
我们很高兴回答您的问题

提交申请

Get bonus