Fundamental Market Analysis for March 21, 2024 USDJPY
The Japanese Yen (JPY) is gaining positive momentum during the Asian session on Thursday and is recovering from its lowest level since November 2023 reached the previous day. The Bank of Japan (BoJ) is reportedly considering another rate hike in July, although an October hike is seen as one of the most likely scenarios. This, along with favorable economic data from Japan, is putting good pressure on the Yen amid speculation that Japanese authorities may intervene to stop further weakening of the currency.
The US Dollar (USD), on the other hand, is adding to overnight losses influenced by the Federal Reserve's (Fed) stance, which in turn is seen as another factor putting downward pressure on the USD/JPY pair. Meanwhile, the Bank of Japan said earlier this week that financial conditions will remain accommodative and offered no guidance on future steps or pace of policy normalization. This could deter JPY bulls from aggressive bets and help limit further losses for the currency pair.
Trading Recommendation: Watch 151.000, on a rebound take Sell positions
The US Dollar (USD), on the other hand, is adding to overnight losses influenced by the Federal Reserve's (Fed) stance, which in turn is seen as another factor putting downward pressure on the USD/JPY pair. Meanwhile, the Bank of Japan said earlier this week that financial conditions will remain accommodative and offered no guidance on future steps or pace of policy normalization. This could deter JPY bulls from aggressive bets and help limit further losses for the currency pair.
Trading Recommendation: Watch 151.000, on a rebound take Sell positions
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