The summary of opinions from participants at the Bank of Japan (BoJ) meeting in September showed that board members discussed the possibility of raising interest rates in the near future. This confirmed market expectations that the central bank would stick to its policy normalization course. In addition, growing geopolitical tensions and the US government shutdown may continue to provide some support for the Japanese yen (JPY) as a safe-haven currency, which in turn could be a headwind for the USD/JPY pair.
Meanwhile, the BoJ's stance differs significantly from forecasts that the US Federal Reserve (Fed) will cut borrowing costs twice this year. The latter does not help the US dollar (USD) attract significant buyers. Moreover, the divergence in the policy outlooks of the Bank of Japan and the Fed should favor the lower-yielding Japanese yen and help limit the USD/JPY pair. Therefore, it would be wise to wait for strong follow-through buying before taking a position in anticipation of a significant strengthening.
Trade recommendation: SELL 146.75, SL 147.95, TP 143.95
Meanwhile, the BoJ's stance differs significantly from forecasts that the US Federal Reserve (Fed) will cut borrowing costs twice this year. The latter does not help the US dollar (USD) attract significant buyers. Moreover, the divergence in the policy outlooks of the Bank of Japan and the Fed should favor the lower-yielding Japanese yen and help limit the USD/JPY pair. Therefore, it would be wise to wait for strong follow-through buying before taking a position in anticipation of a significant strengthening.
Trade recommendation: SELL 146.75, SL 147.95, TP 143.95
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More analytical information and promotions on FreshForex website cutt.ly/LrP6j9qD
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.