USD/JPY Forecast: BoJ’s Yen Strategy Under Scrutiny Amid Economic Indicators
==========
Investors should monitor Japanese government comments and Bank of Japan views regarding the Yen. A return of USD/JPY to 160 could provoke intervention threats and signal the possibility of a July rate hike by the Bank of Japan. US consumer confidence numbers and Fed speakers also require attention. The Japanese government previously attempted to bolster the Japanese Yen, only for the USD/JPY to retarget the 160 handle on Monday, June 24. The BoJ disappointed the markets by holding interest rates steady and failing to signal a July rate hike. Recent private sector PMI numbers are unlikely to meet the requirements of the BoJ to hike interest rates. The BoJ needs the services sector and household consumption to fuel demand-driven inflationary pressures. The CB Consumer Confidence Index will draw investor interest. Economists predict the CB Consumer Confidence Index will fall from 102.0 to 100.0 in June. A drop below 100, for the first time since July 2022, could raise investor bets on a September Fed rate cut. FOMC members Lisa Cook and Michelle Bowman are on the calendar to speak. Views on the economic outlook, inflation, and the Fed interest rate trajectory could affect buyer demand for the US dollar. Near-term trends for USD/JPY will depend on commentary about Yen weakness, Japanese retail sales, and inflation data. Better-than-expected numbers from Japan could enable the BoJ to begin rate hike discussions. Yet, US consumer confidence and inflation figures could maintain interest rate differentials firmly in favor of the US dollar.
#Usd/jpy #BankOfJapan #JapaneseYen #EconomicIndicators #UsConsumerConfidence #FedSpeakers
https://www.fxempire.com/forecasts/article/usd-jpy-forecast-bojs-yen-strategy-under-scrutiny-amid-economic-indicators-1440869
FX Empire /
npub1lj…9zjdc
2024-06-25 01:14:21
Author Public Key
npub1ljmz9hjq6kkwm5ltqfc6dpw9ytalhtnf7sgp4r75dqvtsq2wz9sqp9zjdcSeen on
wss://relay.damus.ioPublished at
2024-06-25 01:14:21Event JSON
{
"id": "9d102b3850b04aad29ef6d5ccbcf77c876fbde4079ff4ceb3699ce8693266825",
"pubkey": "fcb622de40d5acedd3eb0271a685c522fbfbae69f4101a8fd46818b8014e1160",
"created_at": 1719278061,
"kind": 1,
"tags": [],
"content": "USD/JPY Forecast: BoJ’s Yen Strategy Under Scrutiny Amid Economic Indicators\n==========\n\nInvestors should monitor Japanese government comments and Bank of Japan views regarding the Yen. A return of USD/JPY to 160 could provoke intervention threats and signal the possibility of a July rate hike by the Bank of Japan. US consumer confidence numbers and Fed speakers also require attention. The Japanese government previously attempted to bolster the Japanese Yen, only for the USD/JPY to retarget the 160 handle on Monday, June 24. The BoJ disappointed the markets by holding interest rates steady and failing to signal a July rate hike. Recent private sector PMI numbers are unlikely to meet the requirements of the BoJ to hike interest rates. The BoJ needs the services sector and household consumption to fuel demand-driven inflationary pressures. The CB Consumer Confidence Index will draw investor interest. Economists predict the CB Consumer Confidence Index will fall from 102.0 to 100.0 in June. A drop below 100, for the first time since July 2022, could raise investor bets on a September Fed rate cut. FOMC members Lisa Cook and Michelle Bowman are on the calendar to speak. Views on the economic outlook, inflation, and the Fed interest rate trajectory could affect buyer demand for the US dollar. Near-term trends for USD/JPY will depend on commentary about Yen weakness, Japanese retail sales, and inflation data. Better-than-expected numbers from Japan could enable the BoJ to begin rate hike discussions. Yet, US consumer confidence and inflation figures could maintain interest rate differentials firmly in favor of the US dollar.\n\n#Usd/jpy #BankOfJapan #JapaneseYen #EconomicIndicators #UsConsumerConfidence #FedSpeakers\n\nhttps://www.fxempire.com/forecasts/article/usd-jpy-forecast-bojs-yen-strategy-under-scrutiny-amid-economic-indicators-1440869",
"sig": "85da394b9c49bca1115b1995fe823ca8f7a23c8d3cf1a63d2116c952f393fed4e3eaa4c1d05ad87b3d5a467393c9b88d04c70fb7b9e3ffeb2bfc73072d711f77"
}