Investor fears of Japanese intervention, rising borrowing costs, and US-China trade conflicts boost demand for the safe-haven Japanese Yen (JPY). The USD/JPY pair is under pressure as the US Dollar (USD) remains weak. The US ISM Services PMI indicates a slowdown in inflation, which suggests a less hawkish stance by the Federal Reserve (Fed). However, the market has already priced in a 25 basis points interest rate increase. The US government bond yields remain high, supporting the USD. The rate differential between the US and Japan, along with the Bank of Japan's negative interest-rate policy, creates opportunities to buy the USD/JPY pair on dips. The upcoming release of US employment data will influence the Fed's policy outlook and USD demand. Weekly losses are expected for the USD/JPY pair.
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Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.