USD/JPY – Ready for the strong move higher? [Video]
![USD/JPY – Ready for the strong move higher? [Video]](https://editorial.fxsstatic.com/images/i/discover-68.png)
Buy trade idea explained.
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Petar Jaćimović
FXCentrum
Petar Jaćimović was born on 8 July 1989 in Jagodina, Serbia.
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AUD/USD has come under fresh selling pressure and is testing 0.7100 in the Asian session on Wednesday. Australia's flash PMIs showed manufacturing slipped into contraction and services expanding slowly for a second straight month, renewing the pair's downside. Furthermore, a bullish US Dollar acts as a headwind for the pair as traders keenly await the crucial Trump-Xi summit on Thursday. Meanwhile, markets shrug off US-Iran indirect talks.
USD/JPY hovers around mid-157.00s in the Asian session on Wednesday, near two-week highs touched last Friday as the BoJ's dovish rate hike continues to undermine the Japanese Yen. Meanwhile, the US Dollar remains firm amid the Fed's hawkish stance, adding support to the pair, though JPY intervention fears cap further gains. Markets pay little heed to the completion of the round of US-Iran indirect talks ahead of Trump-Xi meeting.
Gold trades on the back foot on Wednesday as expectations of further Federal Reserve interest rate hikes lift the US Dollar and weigh on the non-yielding metal. At the time of writing, XAU/USD trades around $4,315, down 1.0% on the day.
Bitcoin (BTC) is moderating on Wednesday, trading near $86,000 as the crypto market broadly consolidates. Ethereum (ETH) mirrors BTC’s stable outlook, holding above $2,700. Ripple (XRP), meanwhile, edges higher for the sixth consecutive day, currently sitting above $1.61 as bulls tighten their grip.
S&P Global will release on Wednesday its preliminary September Purchasing Managers' Indices (PMIs) for the United States, based on surveys of top private sector executives, to provide an early indication of economic momentum. The data is expected to highlight US economic resilience.
The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.
