- USD/JPY hovers around 149.65 ahead of the key events from the US and Japan.
- Core US PCE eased to 3.7% YoY in September vs. 3.8% prior, the monthly Core PCE rose by 0.3% vs. 0.1% prior.
- Analysts anticipate the Bank of Japan (BoJ) is nearing the end of its ultra-accommodative monetary policy.
- Market players will closely focus on the BoJ and Fed interest rate decisions on Tuesday and Wednesday, respectively.
The USD/JPY pair hovers around 149.65 after retracing from the monthly highs of 150.77 during the Asian session on Monday. Traders prefer to wait on the sidelines ahead of the monetary policy meeting from Japan and the US. These events might trigger volatility in the market.
That being said, the divergence in monetary policy between the US and Japan weighs on the Japanese Yen (JPY) against the US dollar (USD). There is some speculation that the Bank of Japan (BOJ) might tweak its yield curve control (YCC) policy. According to a Reuters poll, analysts believe the BoJ will end its negative interest rate policy next year, with more now anticipating the central bank is nearing ending its ultra-accommodative monetary policy.
On the other hand, the Federal Reserve (Fed) is expected to maintain interest rates steady at the end of its two-day meeting on Wednesday, despite the Fed's preferred inflation measure, the Core US Personal Consumption Expenditure Index (PCE), remains far over the 2% target. On Friday, the Core US PCE eased to 3.7% YoY in September versus 3.8% prior while the monthly Core PCE rose by 0.3% versus 0.1% prior. Furthermore, the September's headline PCE Price Index arrived at 3.4% YoY versus the expected 3.4%.
However, the Fed officials stated that recent economic data suggested that economic activity is growing at a solid pace while the job market remains robust. These upbeat reports raise expectations about additional rate hikes at the December meeting, which might boost the Greenback for the time being.
Looking ahead, the BoJ and Fed monetary policy meetings will be in the spotlight this week. Apart from this, the US ISM Manufacturing PMI for October and Initial Jobless Claims data will be released on Wednesday and Thursday, respectively. The attention will turn to US Nonfarm Payrolls on Friday, which is expected to add 172K jobs in October.
|Today last price
|Today Daily Change
|Today Daily Change %
|Today daily open
|Previous Daily High
|Previous Daily Low
|Previous Weekly High
|Previous Weekly Low
|Previous Monthly High
|Previous Monthly Low
|Daily Fibonacci 38.2%
|Daily Fibonacci 61.8%
|Daily Pivot Point S1
|Daily Pivot Point S2
|Daily Pivot Point S3
|Daily Pivot Point R1
|Daily Pivot Point R2
|Daily Pivot Point R3
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.