- USD/JPY trades in positive territory for the fifth consecutive day on Friday.
- Federal Reserve (Fed) Chair Powell said they are not confident that they have achieved a sufficiently restrictive policy.
- Bank of Japan (BoJ) Governor Ueda said they will exit the ultra-loose monetary policy with caution to avoid major volatility.
- Market players await the US University of Michigan Consumer Sentiment Survey on Friday.
The USD/JPY pair holds above the 151.00 mark during the early Asian session on Friday. The higher US dollar and US Treasury bond yields lend some support to the pair. However, the further gains might trigger some intervention from the Japanese authorities. The pair currently trades near 151.35, losing 0.01% on the day.
Later this week, Fed Governor Raphael Bostic said there’s probably no need for more rate hikes. But the Federal Reserve (Fed) Chair Jerome Powell offered hawkish comments on Thursday, which lift the US Dollar against its rivals. Fed Chair Powell said that they are not confident that they have achieved a sufficiently restrictive policy to bring inflation down to 2% over time while opening the door for additional rate hikes if it’s appropriate.
On Thursday, the US weekly Initial Jobless Claims for the week ending November 4 totaled 217K against the market expectation of 218K. The Continuing Claims rose to 1.834M from 1.812M in the previous reading, the highest level since mid-April.
Investors will focus on US Consumer sentiment and the inflation expectation data due later on Friday. The preliminary University of Michigan consumer sentiment data for November is expected to grow by 63.7.
On the Japanese Yen front, the Bank of Japan (BoJ) maintains its dovish stance despite the aggressive tightening policy from the major central banks. On Thursday, BoJ Governor Kazuo Ueda said the central bank will exit the ultra-loose monetary policy with caution to avoid triggering significant volatility in the bond market.
Ueda added that Japan was making moves towards the central bank's 2% inflation target, with a cycle of increasing wages and domestic demand-driven inflation gradually gathering speed.
Looking ahead, market participants will monitor the Fed's Logan speech for fresh impetus. Any hawkish comment could lift the US Dollar (USD) higher and act as a tailwind for the pair. Apart from this, the preliminary Michigan Consumer Sentiment Index for November and the UoM 5-year Consumer Inflation Expectation will be released. Traders will take cues from the data and find a trading opportunity around the USD/JPY pair.
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
Gold clings to gains around $3,430
Gold fell from its previous record high of $3,500 per troy ounce, as overbought indications and a comeback in the US dollar appear to have led purchasers to take a break. Meanwhile, all eyes are on the Trump-Powell frenzy and impending Fed officials' statements.
EUR/USD trims losses, retargets 1.1500 and beyond
EUR/USD now bounces off daily troughs near 1.1460 and refocuses back on the 1.1500 barrier amid some humble knee-jerk in the US Dollar. In the meantime, markets remain cautious in light of President Trump’s criticism of Fed Chair Jerome Powell and its potential implications for the US markets.
GBP/USD treads water below 1.3400
GBP/USD is trading in a narrow zone below the 1.3400 level as the Greenback's solid comeback gains traction on Tuesday. However, continuing concerns about a US economic downturn and misgivings about the Fed's independence are anticipated to limit Cable's downside risk.
3% of Bitcoin supply in control of firms with BTC on balance sheets: The good, bad and ugly
Bitcoin disappointed traders with lackluster performance in 2025, hitting the $100,000 milestone and consolidating under the milestone thereafter. Bitcoin rallied past $88,000 early on Monday, the dominant token eyes the $90,000 level.
Five fundamentals for the week: Traders confront the trade war, important surveys, key Fed speech Premium
Will the US strike a trade deal with Japan? That would be positive progress. However, recent developments are not that positive, and there's only one certainty: headlines will dominate markets. Fresh US economic data is also of interest.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.