The post Japanese Yen advances to near three-month high against USD, seems poised to appreciate further appeared on BitcoinEthereumNews.com.

The Japanese Yen kicks off the new week on a stronger note and touches a three-month high against the USD. A combination of factors tempers investors’ appetite for riskier assets and boosts demand for the safe-haven JPY. Dovish Fed expectations, falling US bond yields undermine the USD and exert downward pressure on USD/JPY. The Japanese Yen (JPY) adds to Friday’s strong gains against the US Dollar (USD) and kicks off the new week on a positive note, dragging the USD/JPY pair to a near three-week low, around the 146.25-146.20 region during the Asian session. Escalating conflict in the Middle East, along with fears of another COVID-19-like respiratory illness outbreak in China, tempers investors’ appetite for riskier assets. This comes on the back of speculations about a major shift in the Bank of Japan’s (BoJ) policy stance early next year and turns out to be a key factor that is seen boosting the JPY’s relative safe-haven status. The JPY bulls, meanwhile, seem rather unaffected by the recent less-hawkish comments by BoJ policymakers, saying that it was premature to debate an exit from negative interest rates. The USD, on the other hand, continues to be undermined by rising bets that the Federal Reserve (Fed) will maintain the status quo at the December policy meeting and start cutting interest rates by the first half of 2024. Even Fed Chair Jerome Powell’s attempts on Friday to moderate rate-cut expectations also do little to provide any respite to the buck or ease the bearish pressure surrounding the USD/JPY pair. Market participants now look to important US macro data scheduled at the beginning of a new month, including the closely-watched US monthly jobs report, or the Nonfarm Payrolls data, due on Friday for some meaningful impetus. Nevertheless, the aforementioned fundamental backdrop suggests that the path of…

---

Filed under: News - @ December 4, 2023 2:12 am