Japanese Yen moves back closer to multi-week top against USD
The Japanese Yen (JPY) remains on the front foot for the second successive day against its American counterpart and drags the USD/JPY pair below mid-154.00s during the Asian session on Thursday.
Investors now seem convinced that the Bank of Japan (BoJ) will hike interest rates further, which, in turn, is seen underpinning the JPY. Moreover, the recent narrowing of the US-Japan yield differential turns out to be another factor driving flows towards the lower-yielding JPY.
Meanwhile, concerns that US President Donald Trump's trade policies could escalate into a global trade war might hold back the JPY bulls from placing aggressive bets.
Furthermore, the Federal Reserve's (Fed) hawkish pause on Wednesday could act as a tailwind for the US Dollar (USD) and limit losses for the USD/JPY pair. Moving ahead, the highly anticipated European Central Bank (ECB) meeting might elevate market volatility and influence demand for the safe-haven JPY.
Source: FXStreet