The USD/JPY It is trading around 130.60/70, roughly the same level it closed on Monday. It previously bottomed at 129.49, the lowest level since early June. Rabobank analysts warn that a daily close below 130.40 could trigger further losses towards 126.40.
Still hawkish Fed likely to limit short-term declines
“The BOJ will meet again this month on January 18. Given the adjustments made to its yield curve control policy last month, there is increased expectation of further tightening between now and the end of the term. from Governor Kuroda in April and potentially as soon as this month Over the past 5 days, the yen has appreciated by more than 2% against the dollar, suggesting that speculators are already positioning themselves in favor of an outcome Tougher from the Bank of Japan later this month Implicit market rates point to a Bank of Japan rate hike in positive territory within 6 months However, before raising rates, the BOJ could inject more easing into its monetary policy. The market is likely to be disappointed if BOJ policymakers offer nothing new on policy this month.”
“USD/JPY has already pulled back substantially from its highs near 151.95 at the end of October. This factor, combined with the Fed remaining hawkish, is likely to limit the currency pair’s short-term decline. That said, the currency pair is currently trading near short-term support at the May low of 130.41. A close below would trigger a fall to the lows around 126.36.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
