The Japanese Yen gets its hike whatever Tokyo CPI prints
USD/JPY holds just beneath 159.50 on Thursday, ahead 0.05% across a range of forty-two pips, a fifth consecutive session of grinding higher without getting anywhere.
The Japanese Yen experienced a significant increase following a major currency defense operation between Tokyo and Washington. The USD/JPY pair traded just beneath 159.50, holding steady with a slight gain of 0.05% across forty-two pips. The pair remained below a declining 50-day Exponential Moving Average (EMA) and above a rising 200-day EMA.
The Bank of Japan's policy rate of 1.00% was much lower than the US Federal Reserve's range of 3.50% to 3.75%. The fiscal position of Japan, with the government's stimulus program and tax cuts, widened the deficit, making a defended level continue to leak. The Tokyo Consumer Price Index (CPI) core accelerated to 1.9% in July, beating expectations, but the consensus forecast had it at 1.7%.
The inflation was largely due to imported raw material and energy costs, and the exchange rate was both a complaint and a remedy. The market has taken back close to half of the gains made during the largest currency defense operation on record. The decision of when to defend the level now becomes whether it marks the beginning of a cycle or another single step.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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