Japanese Yen struggles to gain any meaningful traction, not out of the woods
The Japanese Yen attracts some haven flows, though it lacks bullish conviction. The BoJ rate-hike uncertainty and disappointing data cap the upside for the JPY. Smaller Fed rate cut bets underpin the USD and offer some support to USD/JPY.
The Japanese Yen (JPY) struggles to capitalize on the previous day's recovery move against its American counterpart, from its lowest level since early August and oscillates in a narrow band during the Asian session on Wednesday.
The uncertainty over the Bank of Japan's (BoJ) rate-hike plans turns out to be a key factor acting as a headwind for the JPY. Adding to this, the disappointing release of Japan's Core Machinery Orders for August contributes to capping the JPY.
That said, a turnaround in the global risk sentiment – as depicted by a weaker tone around the equity markets might continue to offer some support to the safe-haven JPY amid persistent geopolitical risks. Furthermore, a modest US Dollar (USD) downtick holds back traders from placing fresh bullish bets around the USD/JPY pair and leads to subdued price action. Nevertheless, the fundamental backdrop supports prospects for some near-term appreciating move for the pair.
Source: FXStreet
