- USD/JPY extends gains for the second successive session.
- The Japanese Yen weakens on market apprehension regarding BoJ’s rate hikes
- An eased US Inflation data could strengthen sentiment of Fed rate cuts.
USD/JPY continues its upward trajectory, nearing 149.50 during Tuesday's Asian trading session. The Japanese Yen (JPY) weakens against the US Dollar (USD) amid market apprehension regarding rate hikes following the Bank of Japan's (BoJ) departure from its ultra-dovish monetary policy stance.
BoJ Deputy Governor Shinichi Uchida's recent statements indicate a reluctance to pursue aggressive tightening, even after the abandonment of negative interest rates. However, the Japanese Yen could be benefiting from its safe-haven status amid heightened tensions between Israel and Gaza.
The US Dollar Index (DXY) sustains its upward trend for the second consecutive session, hovering around 104.20. However, the Greenback's advance may be tempered by subdued US Treasury yields, with the 2-year and 10-year US yields at 4.47% and 4.18%, respectively, at present.
USD/JPY pair advances as traders exercise caution ahead of the release of United States (US) inflation data slated for Tuesday. In Japan, attention will turn to Gross Domestic Product (GDP) data scheduled for release on Thursday.
US Consumer Price Index (CPI) is expected to moderate, with a year-on-year increase of 2.9%, down from the previous rise of 3.4%. The monthly rate is forecasted to remain unchanged at 0.2%. While the preliminary Japan’s Gross Domestic Product (Q4) is expected to increase by 0.3% against the previous decline of 0.7%.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD turns lower below 1.0350 after German data
EUR/USD comes under mild selling pressure and eases below 1.0350 in the European session on Wednesday. The pair bears the brunt of an unexpected slowdown in the German manufacturing sector, as the nation's Retail Sales data fail to inspire the Euro. Focus shifts to US ADP data and Fed Minutes.
GBP/USD stays defensive below 1.2500 ahead of key US data, Fed Minutes
GBP/USD stays defensive below 1.2500 in the European trading hours on Wednesday, undermined by a risk-off market sentiment and elevated US Treasury bond yields on increased hawkish Fed bets. Traders look to US data, Fedspeak and FOMC Minutes for fresh trading impulse.
Gold eyes US ADP report and Fed Minutes for next push higher
Gold price is consolidating the previous rebound near $2,650 early Wednesday, awaiting the US ADP jobs report and the Minutes of the US Federal Reserve December meeting for the next leg higher.
DOGE and SHIB traders book profits at the top
Dogecoin and Shiba Inu prices broke below their key support levels on Wednesday after declining more than 9% the previous day. On-chain data provider Santiments Network Realized Profit/Loss indicator shows massive spikes in these dog-theme memecoins, indicating traders realize profits.
Five fundamentals for the week: Nonfarm Payrolls to keep traders on edge in first full week of 2025 Premium
Did the US economy enjoy a strong finish to 2024? That is the question in the first full week of trading in 2025. The all-important NFP stand out, but a look at the Federal Reserve and the Chinese economy is also of interest.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.