The Japanese Yen (JPY) continues its upward trend for the second day in a row, fueled by Bank of Japan Governor Kazuo Ueda’s hawkish comments in Parliament. The contrast in policy outlooks between the BoJ and the Federal Reserve has led to a depreciation of the USD/JPY pair.
BoJ Governor Ueda’s remarks on potential interest rate hikes, coupled with strong inflation data, have bolstered the Yen’s position. On the other hand, the US Dollar (USD) has weakened following Fed Chair Jerome Powell’s dovish tone at the Jackson Hole Symposium.
Powell’s hint at future rate cuts has increased market expectations of a 25 basis point reduction in September. Traders are now fully anticipating a rate cut by the Federal Reserve at its upcoming meeting.
Key Market Updates: BoJ Governor Ueda’s Statement Drives Japanese Yen Higher
- Philadelphia Fed President Patrick Harker advocates for gradual rate cuts by the Fed, while Chicago Fed President Austan Goolsbee emphasizes the importance of achieving the employment mandate.
- BoJ Governor Kazuo Ueda dismisses the idea of selling long-term Japanese government bonds to adjust interest rates, hinting at potential rate adjustments based on economic projections.
- Japan’s National Consumer Price Index remains strong, indicating a stable economic outlook.
- US Composite PMI shows continued growth in business activity, despite a slight decline in August.
- FOMC Minutes suggest a consensus among Fed officials for a rate cut in September if inflation remains subdued.
Technical Analysis: USD/JPY Approaches 144.00 Level
The USD/JPY pair is currently trading near 143.90, with a bearish bias indicated by the downtrend line on the daily chart. The RSI is slightly above 30, suggesting a continuation of the bearish trend.
If the pair breaks below the seven-month low of 141.69, it could target the support level at 140.25. On the upside, resistance levels are seen at 145.00 and 145.74, with a potential rally towards 154.50.
USD/JPY: Daily Chart
Japanese Yen Price Today
The Japanese Yen has shown strength against major currencies today, with notable gains against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.06% | -0.06% | -0.11% | -0.23% | -0.01% | -0.24% | -0.16% | -0.08% |
| EUR | -0.06% | 0.00% | -0.02% | -0.29% | -0.04% | 0.09% | 0.10% | -0.12% |
| GBP | -0.11% | -0.02% | 0.00% | -0.38% | -0.06% | 0.10% | 0.05% | -0.17% |
| JPY | 0.23% | 0.29% | 0.38% | 0.00% | 0.27% | 0.57% | 0.62% | 0.26% |
The Japanese Yen FAQs:
- 1. The value of the Japanese Yen is influenced by various factors, including the country’s economic performance and the Bank of Japan’s policies.
- 2. The BoJ’s ultra-loose monetary policy has led to a depreciation of the Yen against other major currencies.
- 3. Policy divergence between the BoJ and other central banks has favored the US Dollar against the Yen.
- 4. The Japanese Yen is considered a safe-haven investment during market turmoil.