The post USD/JPY bulls turn cautious near 159.00, highest since April amid intervention fears appeared on BitcoinEthereumNews.com.

USD/JPY remains supported near its highest level since April touched earlier this Friday. The BoJ rate-hike uncertainty and mixed National CPI from Japan undermine the JPY. September Fed rate cut bets cap gains for the USD and the pair amid intervention fears. The USD/JPY pair oscillates in a narrow range during the Asian session on Friday and consolidates its recent gains to the 159.00 neighborhood, or the highest level since late April touched the last hour. The fundamental backdrop supports prospects for a further near-term appreciating move for the currency pair, though intervention fears might cap the upside.  The Japanese Yen (JPY) continues to be undermined by the disappointment led by the Bank of Japan’s (BoJ) lack of commitment to hiking interest rates in the near term. Furthermore, data released earlier this Friday showed that Japan’s core-core Consumer Price Index (CPI), which excludes food and energy prices, slowed for the ninth straight month and eased to the 2.1% yearly rate from the 2.4% previous. This adds to uncertainty if the BoJ will hike interest rates in July or later in the year, which, along with the underlying bullish sentiment across the global equity markets, dents demand for the safe-haven JPY and acts as a tailwind for the USD/JPY pair.  The US Dollar (USD), on the other hand, stands tall near the top end of its weekly trading range in the wake of the overnight sharp rise in the US Treasury bond yields. This results in the further widening of the US-Japan rate differential, which is seen as another factor weighing on the JPY and lending support to the USD/JPY pair. Investors, meanwhile, remain on alert amid speculations that Japanese authorities will intervene to prop up the domestic currency. Moreover, rising bets for an imminent start of the Federal Reserve’s (Fed)…

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Filed under: News - @ June 21, 2024 3:30 am