Japanese Yen sticks to intraday losses
The Japanese Yen (JPY) extends its steady intraday descent through the Asian session on Thursday, which, along with a modest US Dollar (USD) strength, lifts the USD/JPY pair to the 143.15 area, or a fresh daily high in the last hour.
It, however, remains to be seen if the JPY bears could build on the momentum amid the growing acceptance that the Bank of Japan (BoJ) will continue raising interest rates.
The expectations were reaffirmed by data showing that Japan's real wages fell for the fourth consecutive month in April amid stubborn inflation. This, in turn, should limit deeper JPY losses.
Apart from this, persistent geopolitical risks, trade-related uncertainties, and concerns about the worsening US fiscal condition could benefit the safe-haven JPY.
In contrast, bets that the Federal Reserve (Fed) will lower borrowing costs further in 2025, bolstered by Wednesday's weaker US data, might keep a lid on any further USD appreciation and act as a headwind for the JPY.
This, in turn, warrants some caution before positioning for any further appreciating move for the USD/JPY pair ahead of the high-stakes talks between US President Donald Trump and Chinese President Xi Jinping.
Source: fxstreet
