Japanese yen drops amid Bank of Japan uncertainty | 11 11月 2024

11 11月 2024, USD/JPY

Japanese yen drops amid Bank of Japan uncertainty

USDJPY:

The Japanese yen (JPY) declined against its US counterpart during the Asian session on Monday after the Bank of Japan's (BoJ) summary of opinions from its October meeting showed that policymakers were divided over the timing of a rate hike. This comes amid a domestic political backdrop that is expected to complicate further tightening of the BoJ's monetary policy and undermine the yen. In addition, the prevalence of risk sentiment and fears that US President-elect Donald Trump may once again resort to protectionist trade measures against Japan are further dampening demand for the safe-haven yen.

Meanwhile, expectations that Trump's policies will boost inflation and limit the Federal Reserve's (Fed) ability to aggressively ease policy serve as a tailwind for the US Dollar (USD). This, in turn, is seen as another supportive factor for the USD/JPY pair. Nevertheless, the recent verbal intervention by the Japanese authorities may deter JPY bears from aggressive bets and limit the currency pair's upside. Investors may prefer to stay on the sidelines ahead of important US macroeconomic data releases this week, including the latest consumer inflation data and Fed Chairman Jerome Powell's scheduled speech.

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

Connect Drawdown bonus 101% and trade with double your 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.