USD/JPY records fresh yearly high above 113.50 ahead of US CPI, FOMC minutes
- USD/JPY continues to accelerate gains for the third straight session on Wednesday.
- US dollar at fresh yearly highs above 94.50 boosting prospects for USD/JPY.
- US Inflation, hawkish Fed members, and FOMC minutes steal the spotlight.
USD/JPY prints fresh daily gains on Wednesday in the early Asian trading session. The pair started higher this Monday and the momentum is still carried on the back of a firmer US dollar. At the time of writing, USD/JPY is trading at 113.58, up 0.02% for the day.
The hawkish comments from Fed’s officials strengthened the US Fed’s stance on November tapering although recent economic data tell a different story. St. Louis Fed President James Bullard said he support November tapering along with Atlanta Fed President Raphael Bostic. The greenback remains supported at the higher level, pushing USD/JPY toward fresh 2021 highs.
The US Consumer Inflation Expectations came at 5.3% in September, rising for the 11th straight month whereas the number of job openings fell more than expected in August. Furthermore, the International Monetary Fund (IMF) downgraded the growth in the US economy from 7% in July to 6%. The US benchmark T-bond yields trade lower at 1.57% in response to the factors, but the US dollar remained unfazed.
On the other hand, the Japanese yen remained on the backfoot after the recent data revealed a drop in Japan’s Business Mood. The Reuters Tankan sentiment index for manufactures fell to 16 in October from 18 in the previous month.
As for now, traders are waiting for Japan’s Machine Orders, US Core Inflation Rate, and FOMC Minutes to gauge the market sentiment.
USD/JPY additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
