- USD/JPY oscillates in a narrow trading band near 147.75 amid the cautious mood.
- Japanese Balance of Trade for August came in at ¥-930.5B, worse than the expectation of ¥-659.1B.
- The Federal Reserve (Fed) is widely expected to hold the interest rates in the 5.25% to 5.5% range.
- Traders will closely monitor the Fed interest rate decision ahead of the Bank of Japan (BoJ) meeting.
The USD/JPY pair remains confined in a range during the early Asian session on Wednesday. Traders prefer to wait on the sidelines ahead of the Federal Reserve (Fed) interest rate decision on Wednesday, which Fed is expected to keep rates unchanged at the 5.25%-5.50% range. The pair currently trades near 147.75, down 0.08% on the day.
The latest data from Japan’s Ministry of Finance showed on Wednesday that the nation’s Balance of Trade for August came in at ¥-930.5B, worse than the expectation of ¥-659.1 B. Meanwhile, Exports came in at -0.8% YoY versus -0.3% prior, better than expected at -1.7%. Imports improved to -17.8% from -13.6%, beating the estimation of -19.4%.
Early Wednesday, Japan's top currency diplomat Masato Kanda came out with verbal intervention remarks. Kanda stated that Japanese authorities are dealing appropriately with FX moves with a high sense of urgency.
Furthermore, the Bank of Japan (BoJ) will announce an interest rate decision on Friday. The BOJ is largely anticipated to maintain its short-term interest rate target of -0.1% and its 10-year bond yield target of around 0%. Markets are waiting to see whether Governor Kazuo Ueda would provide any new signals about the timing of a policy move and additional tweaking to its Yield Curve Control (YCC) at his press conference after the meeting.
Across the pond, the Federal Reserve (Fed) is scheduled to announce the two-day monetary policy meeting on Wednesday and is widely expected to hold the interest rates in the 5.25% to 5.5% range. This, in turn, might exert some selling pressure on the Greenback (USD) and act as a headwind for the USD/JPY pair. About the data, the US housing industry showed mixed results in August. The US Census Bureau revealed on Tuesday that US Housing Starts fell 11.3% while building permits surged 6.9%.
Moving on, traders will keep an eye on the Fed meeting decision on Wednesday at 18:00 GMT. On Friday, BoJ will announce its monetary policy decision. These events could trigger the volatility in the market and could give a clear direction to the USD/JPY pair.
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.
Recommended content
Editors’ Picks
EUR/USD loses traction, retreats below 1.0600
EUR/USD lost its recovery momentum and declined below 1.0600 in the American session on Friday, erasing a portion of its daily gains in the process. Nevertheless, the risk-positive market atmosphere after PCE inflation data helps the pair limit its losses.
GBP/USD turns negative on the day below 1.2200
GBP/USD reversed its direction and slumped below 1.2200 in the American session on Friday after rising above 1.2270 earlier in the day. Position readjustments and profit-taking on the last trading day of the quarter seems to be weighing on Pound Sterling.
Gold reverses direction, drops below $1,860
Following a steady rebound toward $1,880 on Friday, Gold price made a sharp U-turn and turned negative on the day near $1,860. Although the 10-year US T-bond yield is down more than 1%, XAU/USD struggles to find demand on the last day of Q3.
Polkadot Price Forecast: DOT reversal seems inevitable after 92% correction from all-time high
Polkadot price, in nearly two years, has shed 92.91% from its all-time high of $55.09. The massive downswing in DOT has pushed it down to levels that were last seen in October 2020. Hence, the chances of this altcoin forming a bottom and rallying are high.
Earnings beat triggers Nike to spike 9%
Nike (NKE) stock has surged over 9% in Friday’s premarket, climbing above $98 per share, following late Thursday’s fiscal first-quarter earnings release. Nike beat pessimistic earnings expectations by more than 23% and hiked its dividend by 9%.