The post USD/JPY struggles to capitalize on modest intraday gains, up a little around mid-142.00s appeared on BitcoinEthereumNews.com.

USD/JPY kicks off the new week on a positive note and stalls Friday’s pullback from a multi-week top. The upbeat market mood, Japan’s politics and mixed data from Japan undermine the safe-haven JPY.  The divergent BoJ-Fed policy expectations keep a lid on any further appreciating move for the pair.  The USD/JPY pair attracts some dip-buyers at the start of a new week and reverses a part of Friday’s sharp retracement slide from the 146.50 area or over a three-week high. Spot prices, however, retreat a few pips in the last hour and currently trade around mid-142.00s, up less than 0.25% for the day. The already upbeat market mood gets an additional boost in reaction to more stimulus announced by China over the weekend. In fact, the People’s Bank of China (PBOC) on Sunday said it would tell banks to lower mortgage rates for existing home loans. Furthermore, Japan’s incoming Prime Minister (PM) Shigeru Ishiba said that the Bank of Japan’s (BoJ) monetary policy must remain accommodative to underpin a fragile economic recovery. This, along with news that the new PMI is planning a general election for October 27 and mixed Japanese economic data, undermines the Japanese Yen (JPY) and is seen lending support to the USD/JPY pair.  A government report published earlier today showed that Japan’s Retail Sales rose 2.8% in August from a year earlier as compared to market expectations for an increase of 2.3% and the 2.7% growth registered in the previous month. This, however, was offset by dismal Industrial Production data, which contracted more than anticipated, by 3.3% during the reported month and did little to impress the JPY bulls. That said, the growing market conviction that the BoJ will hike interest rates again by the end of this year helps limit any meaningful JPY losses. Apart…

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Filed under: News - @ September 30, 2024 1:01 am