Japanese Yen hangs near two-week low against a slightly firmer USD
The Japanese Yen (JPY) remains close to a nearly two-week low touched against its American counterpart the previous day, though any further decline seems elusive.
The latest optimism over a positive outcome from US-China trade talks is seen as a key factor undermining the traditional safe-haven status of the JPY. Adding to this, a modest US Dollar (USD) uptick lifts the USD/JPY pair back above the 145.00 psychological mark during the Asian session on Wednesday.
However, a combination of factors should help limit deeper JPY losses. A federal appeals court ruled that US President Donald Trump’s tariffs can remain in effect while legal appeals continue.
This adds to a layer of uncertainty in the markets, which, along with bets that the Bank of Japan (BoJ) will continue raising interest rates, should act as a tailwind for the JPY. Moreover, dovish Federal Reserve (Fed) expectations should cap the Greenback and the USD/JPY pair.
Source: FXStreet