The Japanese Yen meets with a fresh supply in the wake of the BoJ’s dovish outlook.
Fed Governor Waller’s hawkish comments underpin the USD, supporting USD/JPY.
Thursday’s US macro data eyed for some impetus ahead of the PCE data on Friday.
The Japanese Yen (JPY) struggles to capitalize on the previous day's modest recovery against its American counterpart from the lowest level since 1990 and edges lower during the Asian session on Thursday. Speculations that Japanese authorities may soon intervene in the markets to support the domestic currency prompted traders to lighten their bearish bets around the JPY on Wednesday. That said, the Bank of Japan's (BoJ) cautious approach and uncertain outlook for future rate hikes caps any further JPY appreciating move.
The US Dollar (USD), on the other hand, stands tall near the monthly peak in the wake of Federal Reserve Governor Christopher Waller's hawkish remarks on Wednesday. This turns out to be another factor that assists the USD/JPY pair to attract some dip-buying, though the upside seems limited as traders might wait for more cues about the Fed's policy path. Hence, the focus will remain glued to the US Personal Consumption Expenditures (PCE) Price Index – the Fed's preferred inflation gauge – due for release on Friday.
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