USD/JPY Holding Steady Near Six-Week High: Cautious Optimism About Trade War Supports

Early on Friday, the Japanese yen continues to trade at a six-week low against the US dollar as traders look forward to the upcoming trade talks between US and China. At the time of writing, USD/JPY is trading at around 108.16.

However, expectations of a possible rate cut by the Fed in its upcoming meeting next week is capping the gains in the Guppy. On Thursday, the ECB sounded dovish, announcing a 10 bps rate cut and restarting its QE program to support the weakening Eurozone economy.

The following week should be an interesting one for USD/JPY, with both central banks – the Fed as well as the BOJ due to hold their meetings. Traders will keep an eye on both banks to see if they turn dovish in the face of recent trade tensions and weakness in economic growth, especially in Japan.

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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.
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