Japanese Yen edges higher as PPI reaffirms BoJ rate hike bets and USD bulls await US CPI
The USD/JPY pair struggles to capitalize on the previous day's recovery momentum and edges lower during the Asian session on Friday.
The Japanese Yen experienced a slight uptick on Friday as the Producer Price Index (PPI) reported a 5.4% YoY increase in August, surpassing expectations. This data point bolstered bets for a potential Federal Reserve (Fed) rate hike next week. Meanwhile, traders are anticipating the release of US Consumer Price Index (CPI) figures to gauge the Federal Reserve's (Fed) future policy stance, which will influence the USD/JPY pair.
The Japanese Yen benefited from the likelihood of a 25-basis-point (bps) interest rate hike at the upcoming BoJ policy meeting on September 17–18. Hawkish expectations from prominent BoJ members and the central bank's assertion that underlying inflation is near 2% and policy rates are still below the neutral rate further supported the Yen.
Consequently, the USD/JPY pair consolidated around the mid-154.00s during the Asian session, with a potential upside target of 158.49 if it breaks above the 38.2% Fibonacci retracement level. Conversely, a breakdown below 154.95, near the 38.2% retracement, could trigger a decline towards the 50.0% retracement at 152.08 and the 61.8% level at 149.21.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- Swiss Franc declines as US Dollar strengthens on rising Fed hike bets fxstreet.com
- Bitcoin dips to $77.1k as PPI data boosts Fed rate hike bets, oil prices jump investing.com
- What a Fed rate hike actually means for the U.S. economy and inflation financialpost.com
- Bitcoin below $77,000, Zcash leads losses as traders bet on a Fed rate hike coindesk.com
