USD/JPY Ascends Amid Geopolitical Tensions; Investors Eye Key Economic Releases

The USD/JPY currency pair is witnessing a notable rise, marking its annual peak as it navigates the dynamics of the Asian trading session on Thursday, settling near the 150.50 mark.

Arslan Butt•Thursday, October 26, 2023•2 min read

The USD/JPY currency pair is witnessing a notable rise, marking its annual peak as it navigates the dynamics of the Asian trading session on Thursday, settling near the 150.50 mark.

The increase in US Treasury yields is a major factor supporting this bullish momentum in the pair. Additionally, the geopolitical environment, which includes Israel’s Prime Minister Benjamin Netanyahu’s announcement of potential ground operations in Gaza, heightens the risk-averse attitude, which ultimately affects the pair’s trajectory.

On the domestic front, Japan’s Prime Minister Fumio Kishida underscores the alignment of the Bank of Japan’s (BoJ) monetary stance, focusing on sustainable inflation, with the government’s wage increment initiatives. Kishida reinforces that the BoJ’s approach complements the government’s efforts to mitigate inflationary pressures.

Despite its steadfast commitment to fostering long-term inflation, the BoJ has maintained a cautious stance on interest rate hikes over the previous two years. This raises questions about whether Japan’s inflation trajectory will align with the BoJ’s target of 2%, potentially challenging the central bank’s aspirations.

Highlighting the importance of currency stability, Japan’s Deputy Chief Cabinet Secretary Murai Hideki communicates, via Reuters, the significance of maintaining currency movements that mirror fundamental economic factors. Hideki voices concerns over erratic foreign exchange fluctuations and remains non-committal on the topic of currency interventions. He pledges unwavering dedication to judicious actions pertaining to currency-related affairs.

As the market landscape evolves, investors are keenly focusing on upcoming economic data releases, notably the Tokyo Consumer Price Index (CPI) and the Core CPI for October. These figures are critical, especially considering the potential implications they might have on the BoJ’s policy decisions.

The buoyancy in US Treasury yields helps the US Dollar Index (DXY) to continue its upward trend. Notably, US bond yields are nearing 16-year zeniths, with the 10-year Treasury note recorded at 4.95% in the latest assessments.

The economic calendar for the week remains eventful, with the imminent release of US Q3 Gross Domestic Product (GDP) data on Thursday. Moreover, Friday’s unveiling of the Core Personal Consumption Expenditures (PCE) figures will shed light on the fluctuations in the US goods and services pricing landscape.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

Japanese Yen Rebounds for 3rd Day as USD/JPY Drops Below 143.20

3 days ago

Forex Signals Weekly Brief: Ferrari, AMD, SMCI and BP Q1 Earnings Next

4 days ago

BoJ Cuts Growth Outlook, USD/JPY Eyes ¥147.36 as NFP Looms

1 week ago

Comments

0 0 votes

Article Rating

0 Comments

Oldest

Newest Most Voted

Inline Feedbacks

View all comments

USD/JPY Ascends Amid Geopolitical Tensions; Investors Eye Key Economic Releases

The USD/JPY currency pair is witnessing a notable rise, marking its annual peak as it navigates the dynamics of the Asian trading session on Thursday, settling near the 150.50 mark.

Related Articles

Comments

Sidebar rates

HFM

Doo Prime

XM

Best Forex Brokers

USD/JPY Ascends Amid Geopolitical Tensions; Investors Eye Key Economic Releases

The USD/JPY currency pair is witnessing a notable rise, marking its annual peak as it navigates the dynamics of the Asian trading session on Thursday, settling near the 150.50 mark.

Related Articles

Comments

Sidebar rates

HFM

Related Posts

Doo Prime

XM

Best Forex Brokers