"USD/JPY: Japanese Yen Under Pressure from Bank of Japan's Ultra-Dovish Policy"
The Japanese yen fluctuates in a narrow range during Thursday's Asian session, consolidating its recent losses against the US dollar since the beginning of the week. The powerful earthquake in Japan complicates the Bank of Japan's (BoJ) task of reversing negative interest rates next week. Additionally, a decline in inflation in Tokyo and weak wage data confirm market expectations that the Japanese central bank will stick to its ultra-dovish stance.
Strong US retail sales data reduce the chances of an imminent Federal Reserve (Fed) rate cut, supporting the dollar. However, market sentiments remain volatile due to further escalation in military actions in the Middle East and economic problems in China, favoring the relative safety of the yen and limiting the rise of the USD/JPY pair.
Trading recommendation: Primarily trade on buy (Buy) from current levels. Today's macroeconomic news may influence the USD/JPY dynamics.
#Forex #USDJPY #BoJ #Fed #MarketSentiments
The Japanese yen fluctuates in a narrow range during Thursday's Asian session, consolidating its recent losses against the US dollar since the beginning of the week. The powerful earthquake in Japan complicates the Bank of Japan's (BoJ) task of reversing negative interest rates next week. Additionally, a decline in inflation in Tokyo and weak wage data confirm market expectations that the Japanese central bank will stick to its ultra-dovish stance.
Strong US retail sales data reduce the chances of an imminent Federal Reserve (Fed) rate cut, supporting the dollar. However, market sentiments remain volatile due to further escalation in military actions in the Middle East and economic problems in China, favoring the relative safety of the yen and limiting the rise of the USD/JPY pair.
Trading recommendation: Primarily trade on buy (Buy) from current levels. Today's macroeconomic news may influence the USD/JPY dynamics.
#Forex #USDJPY #BoJ #Fed #MarketSentiments