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The USD/JPY forecast continues to strengthen, approaching the 149.50 level during the Asian trading session. The Japanese Yen (JPY) weakened against the US Dollar (USD) amid market concerns about interest rate hikes following the Bank of Japan (BoJ) shifting its ultra-dovish monetary policy stance.
The latest statement from BoJ Deputy Governor Shinichi Uchida indicates an inability to implement aggressive policy tightening, even after abandoning negative interest rates. Nevertheless, the Japanese Yen could still gain as a safe-haven asset, given the rising tensions between Israel and Gaza.
The US Dollar Index (DXY) continues to show a strengthening trend for the second consecutive session, hovering around 104.20. However, the Dollar’s gains might be limited due to low US Treasury yields, with the 2-year and 10-year US yields currently at approximately 4.47% and 4.18%, respectively.
The USD/JPY pair rose as traders remained cautious ahead of the release of US inflation data scheduled for Tuesday. In Japan, attention will focus on the Gross Domestic Product (GDP) data set to be released on Thursday.
The US Consumer Price Index (CPI) is projected to experience a moderate increase, with a year-over-year rise of around 2.9%, down from the previous figure of approximately 3.4%. Monthly interest rates are expected to remain unchanged at 0.2%. Meanwhile, Japan’s GDP (Q4) is forecasted to grow by 0.3%, improving from the previous decline of around 0.7%.
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The analysis “USDJPY Forecast Today: Smooth Ride, US Inflation Projection Heats Up!” is based on fundamental and technical insights from trusted sources and does not constitute advice or a solicitation. Always remember that this content aims to enrich readers’ information. Always conduct independent research on other forex information before using it as a reference in your trading activities.
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