Japanese Yen Soars Following Hawkish BoJ

Fundamental Analysis

* Yen Frenzy: The Japanese Yen (JPY) continues to strengthen against the dollar, driven by expectations that the Bank of Japan (BoJ) will raise interest rates at next week’s policy meeting. Toshimitsu Motegi, a senior official in the ruling party, has urged the BoJ to more transparently communicate its plans to normalize monetary policy through gradual interest rate hikes, according to Reuters. Additionally, Prime Minister Fumio Kishida has stated that normalizing the central bank’s monetary policy would facilitate Japan’s shift towards a growth-driven economy. On the other hand, the dollar is facing challenges due to increased speculation of a Fed rate cut in September. According to CME Group’s FedWatch Tool, markets now show a 93.6% probability of a 25-basis point rate cut at the September Fed meeting, up from 88.5% the previous day.

Technical Analysis

* Technical Breakout: USDJPY was traded lower following prior breakout below the previous support level 153.450. MACD which illustrate diminishing bullish momentum signal suggest the pair likely to extend its losses.

* Resistance and Support: If the bearish momentum persists, there’s a strong likelihood that the price will potentially head towards 151.950. Conversely, a potential reversal is also to be expected and the price could head towards 155.250 after it breach back above the level 153.450.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

Moving forward, investors will focus on the upcoming U.S. GDP report for the second quarter as a key catalyst. Additionally, other data such as U.S. durable goods orders and initial jobless claims will also be closely monitored.

Know how to manage trading risks with risk management strategies.

Monitoring

Stay updated on US and Japan data, central bank updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

Grab the trading opportunity and dive into the action risk-free with a free demo account. It is the perfect way to hone your skills and explore the exciting world of trading!

Open Your Free Demo Account And Start Trading Risk-Free

Join Now

Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.

Step into the world of trading with confidence today. Open a free PU Prime live CFD trading account now to experience real-time market action, or refine your strategies risk-free with our demo account.

Disclaimer

This content is for educational and informational purposes only and should not be considered investment advice, a personal recommendation, or an offer to buy or sell any financial instruments.

This material has been prepared without considering any individual investment objectives, financial situations. Any references to past performance of a financial instrument, index, or investment product are not indicative of future results.

PU Prime makes no representation as to the accuracy or completeness of this content and accepts no liability for any loss or damage arising from reliance on the information provided. Trading involves risk, and you should carefully consider your investment objectives and risk tolerance before making any trading decisions. Never invest more than you can afford to lose.