Japanese Yen Strengthens Against USD Amid Mixed Fundamental Signals
The Japanese Yen (JPY) struggled to build on the previous day’s recovery against its American rival and attracted fresh sellers during the Asian session on Friday. Data released on Thursday showed that business activity in Japan’s manufacturing and services sectors contracted in October. Moreover, a drop in Tokyo’s core inflation rate below the Bank of Japan’s (BOJ) target of 2% dampened expectations for further interest rate hikes in 2024 and exerted pressure on the JPY.
Additionally, a generally positive risk tone further dented the JPY’s safe-haven status, which, along with the emergence of some US Dollar (USD) buying, helped the USD/JPY pair find some support towards mid-151.00s. That said, recent verbal intervention by the Japanese authorities helped limit any meaningful JPY decline and capped the pair. Traders now look to the US macro data for near-term impetus amid political uncertainty ahead of Japan’s general election on Sunday.
Source: FXStreet