The post USD/JPY extends upside near 158.50 despite strong Japan’s Tankan Index appeared on BitcoinEthereumNews.com.

USD/JPY trades in positive territory for the third consecutive day  BoJ data suggested an additional $13 billion JPY intervention on Friday.  Financial markets see the chance of a Fed rate cut by September at 100%.  The USD/JPY pair extends gains near 158.40 on the selling pressure around the Japanese currency during the early Asian session on Wednesday. The US Building Permits, Housing Starts, Industrial Production and the Fed Beige Book will be released later on Wednesday, along with the Federal Reserve’s (Fed) Barkin and Waller speeches. e data suggest the possibility of yen-buying interventions worth around 2 trillion yen on Friday, Data released on Tuesday showed that the Bank of Japan (BoJ) stepped into the foreign exchange market on two consecutive trading days last Thursday and Friday, pushing the Japanese Yen from 162.00 to 157.00 against the USD in just two days.  However, the interest rate differential between Japan and the US continues to weigh on the JPY and create a tailwind for USD/JPY. Earlier this month, the Yen reached a low of 161.94, its lowest since December 1986.  The Japan’s Tankan Manufacturers Sentiment Index rose to 11.0 in July from 6.0 in June. This figure registered the first gain in four months and indicated a pickup in economic activity. On the other hand, The softer US June Consumer Price Index (CPI) has spurred the chance of Fed rate cuts. The growing speculation that the Fed will cut interest rates by September might cap the pair’s upside. According to the CME FedWatch Tool, traders see the odds of a Fed rate cut by September at 100%, up from 70% a month ago.  Japanese Yen FAQs The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but…

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Filed under: News - @ July 17, 2024 4:08 am