{"id":352466,"date":"2024-07-26T09:49:22","date_gmt":"2024-07-26T04:19:22","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=352466"},"modified":"2024-07-26T09:49:22","modified_gmt":"2024-07-26T04:19:22","slug":"japanese-yen-remains-stronger-as-us-dollar-weakens-ahead-of-pce-inflation-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/japanese-yen-remains-stronger-as-us-dollar-weakens-ahead-of-pce-inflation-crypto-news\/","title":{"rendered":"Japanese Yen remains stronger as US Dollar weakens ahead of PCE inflation &#8211; Crypto News"},"content":{"rendered":"<p><\/p>\n<div id=\"fxs_article_content\">\n<ul>\n<li><strong>The Japanese Yen gains ground after the release of the Tokyo CPI data on Friday.<\/strong><\/li>\n<li><strong>The JPY\u2019s downside may be limited as traders may continue unwinding their carry trades ahead of the BoJ meeting.<\/strong><\/li>\n<li><strong>The US Dollar may limit its downside\u00a0as recent US economic data have reduced rate cut expectations for September.<\/strong><\/li>\n<\/ul>\n<p>The Japanese Yen (JPY) edges higher after the Statistics Bureau of Japan released the Tokyo Consumer Price Index (CPI) data on Friday. The JPY receives support as traders potentially unwind their carry trades ahead of the Bank of Japan&#8217;s two-day policy meeting, concluding on Wednesday. During the meeting, the board will discuss the possibility of raising interest rates and outline details on tapering its extensive bond purchases.<\/p>\n<p>Japan&#8217;s top currency diplomat, Masato Kanda, informed the G20 on Friday that foreign exchange (FX) volatility negatively impacts the Japanese economy. Kanda\u00a0noted an increasing likelihood of a soft landing and emphasized the need to monitor the economy and implement necessary measures closely, according to Reuters.<\/p>\n<p>The US Dollar may receive\u00a0support as stronger US economic data have reduced some rate cut expectations for September. On Friday, attention will be on the release of the Personal Consumption Expenditures (PCE) Price Index for June.<\/p>\n<p>On Thursday, the US <a rel=\"nofollow noopener\" target=\"_blank\" data-fxs-autoanchor=\"\" href=\"https:\/\/www.fxstreet.com\/economic-calendar\">Gross Domestic Product<\/a> (GDP) for the second quarter (Q2) was stronger than expected. This follows Wednesday\u2019s US PMI data, which indicated a faster expansion in private-sector activity for July, highlighting the resilience of US growth despite elevated interest rates.<\/p>\n<h2 class=\"fxs_headline_medium\">Daily Digest Market Movers: Japanese Yen improves after the inflation data<\/h2>\n<ul>\n<li>The headline Tokyo CPI for July increased by 2.2% year-over-year, slightly down from the previous 2.3% rise. The Tokyo CPI excluding Fresh Food and Energy went up by 1.5% YoY, compared to the earlier increase of 1.8%. Moreover, the CPI excluding Fresh Food also rose by 2.2% in July, matching market expectations.<\/li>\n<li>Bank of America indicates that strong economic growth in the United States allows the Federal Open Market Committee (FOMC) to &#8220;afford to wait&#8221; before making any changes. The bank states that the economy &#8220;remains on robust footing&#8221; and continues to expect the Fed to start cutting rates in December.<\/li>\n<li>According to CME Group\u2019s FedWatch Tool, markets now indicate an 88.6% probability of a 25-basis point rate cut at the September Fed meeting, down\u00a0from 94.0% a week earlier.<\/li>\n<li>On Thursday, the US GDP grew at an annualized rate of 2.8%, adjusted for seasonality and inflation, up from the previous reading of 1.4% and surpassing forecasts of 2%. Additionally, Initial Jobless Claims fell to 235K in the week ending July 19, compared to the previous reading of 243K and the expected 238K.<\/li>\n<li>On Wednesday, Japanese Finance Minister Shunichi Suzuki, Chief Cabinet Secretary Yoshimasa Hayashi, and top currency diplomat Masato Kanda avoided commenting on foreign exchange matters, according to Reuters.<\/li>\n<li>The Japanese Cabinet Office kept its economic assessment unchanged for July but cautioned about a bleak outlook, noted in its monthly report on Thursday. The government also downgraded its evaluation of exports, indicating that they are stagnating.<\/li>\n<li>The BlackRock Investment Institute noted in its mid-year outlook that Japan\u2019s economic recovery and rising inflation make its equity market one of its strongest convictions. The firm anticipates that the Bank of Japan will not raise interest rates at next week&#8217;s meeting.<\/li>\n<li>Reuters reported on Monday that a senior official in the ruling party, Toshimitsu Motegi urged the Bank of Japan (BoJ) to more clearly communicate its plan to normalize monetary policy through gradual interest rate hikes, according to Reuters. Prime Minister Fumio Kishida added that normalizing the central bank\u2019s monetary policy would support Japan&#8217;s transition to a growth-driven economy.<\/li>\n<li>JP Morgan has anticipated no rate hike from the Bank of Japan (BoJ) in July or at any point in 2024. A July rate increase is not their base case, and they do not expect any hikes for the remainder of 2024. They believe it is too early to adopt a bullish stance on the Yen.<\/li>\n<\/ul>\n<h2 class=\"fxs_headline_medium\">Technical Analysis: USD\/JPY hovers around 154.00<\/h2>\n<p>USD\/JPY trades around 154.00 on Friday. The daily <a rel=\"nofollow noopener\" target=\"_blank\" data-fxs-autoanchor=\"\" href=\"https:\/\/www.fxstreet.com\/rates-charts\/chart\">chart<\/a> analysis shows that the <a rel=\"nofollow noopener\" target=\"_blank\" data-fxs-autoanchor=\"\" href=\"https:\/\/www.fxstreet.com\/currencies\/usdjpy\">USD\/JPY pair<\/a> has returned to the descending channel, indicating the weakening of a bearish bias. However, the 14-day Relative Strength Index (RSI) is positioned at the level of 30, indicating an oversold situation and a potential short-term rebound.<\/p>\n<p>The USD\/JPY pair may test the lower boundary of the descending channel around the level of 153.50, followed by May&#8217;s low of 151.86 level. Further support could be found at the psychological level of 151.00.<\/p>\n<p>On the upside, the USD\/JPY pair may test the \u201cthrowback support level turned resistance\u201d around the 154.50 level. Further resistance appears at the nine-day Exponential Moving Average (EMA) of 155.80, followed by the upper boundary of the descending channel around 156.60.<\/p>\n<h3 class=\"fxs_headline_small\">USD\/JPY: Daily Chart<\/h3>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/editorial.fxstreet.com\/miscelaneous\/image-638575536186159234.png\"><\/a><\/p>\n<div class=\"module_currencyprices_cke post-module\">\n<div class=\"fxs-major-currency-prices-wrapper\" data-config-asset=\"JPY\" data-config-criteria=\"Strongest\" data-config-currencies=\"USD,EUR,GBP,JPY,CAD,AUD,NZD,CHF\" data-config-period=\"Today\" data-config-quotes=\"1.08455:1.08557,1.28513:1.28617,1.18491:1.18477,0.006496:0.0065,0.00599:0.005988,0.005055:0.005054,0.723305:0.723775,0.667:0.666705,0.5629:0.562735,111.335:111.336,0.65383:0.65495,0.60282:0.6034,0.508745:0.509225,100.659:100.751,0.90383:0.90489,0.58866:0.588445,0.5429:0.542065,0.45811:0.45752,90.62:90.52,0.8138:0.81303,0.900485:0.898475,1.134315:1.135085,1.045861:1.045599,0.882585:0.88253,174.622:174.607,1.56805:1.568295,1.735209:1.73309,1.92658:1.92896\" data-config-topic=\"JPY\" data-content-module-translate=\"0\" data-module=\"currencyprices\" data-type=\"currencyprices\" data-version=\"v1\" id=\"content-module-currencyprices-JPY-494\">\n<h2 class=\"fxs-major-currency-prices-title\">Japanese Yen PRICE Today<\/h2>\n<p class=\"fxs-major-currency-prices-content\">The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the New Zealand Dollar.<\/p>\n<table border=\"1\" class=\"fxs-major-currency-prices-currency-prices-table\">\n<thead>\n<tr>\n<th>\u00a0<\/th>\n<th>USD<\/th>\n<th>EUR<\/th>\n<th>GBP<\/th>\n<th>JPY<\/th>\n<th>CAD<\/th>\n<th>AUD<\/th>\n<th>NZD<\/th>\n<th>CHF<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr class=\"fxs-major-currency-prices-currency-price\">\n<th>USD<\/th>\n<td>\u00a0<\/td>\n<td class=\"light-red\">-0.09%<\/td>\n<td class=\"light-red\">-0.08%<\/td>\n<td class=\"light-red\">-0.06%<\/td>\n<td class=\"light-red\">-0.06%<\/td>\n<td class=\"light-red\">-0.17%<\/td>\n<td class=\"light-green\">0.04%<\/td>\n<td class=\"light-red\">-0.07%<\/td>\n<\/tr>\n<tr class=\"fxs-major-currency-prices-currency-price\">\n<th>EUR<\/th>\n<td class=\"light-green\">0.09%<\/td>\n<td>\u00a0<\/td>\n<td class=\"light-green\">0.01%<\/td>\n<td class=\"light-green\">0.03%<\/td>\n<td class=\"light-green\">0.04%<\/td>\n<td class=\"light-red\">-0.10%<\/td>\n<td class=\"light-green\">0.15%<\/td>\n<td class=\"light-green\">0.03%<\/td>\n<\/tr>\n<tr class=\"fxs-major-currency-prices-currency-price\">\n<th>GBP<\/th>\n<td class=\"light-green\">0.08%<\/td>\n<td class=\"light-red\">-0.01%<\/td>\n<td>\u00a0<\/td>\n<td class=\"light-green\">0.02%<\/td>\n<td class=\"light-green\">0.03%<\/td>\n<td class=\"light-red\">-0.09%<\/td>\n<td class=\"light-green\">0.13%<\/td>\n<td class=\"gray\">0.00%<\/td>\n<\/tr>\n<tr class=\"fxs-major-currency-prices-currency-price\">\n<th>JPY<\/th>\n<td class=\"light-green\">0.06%<\/td>\n<td class=\"light-red\">-0.03%<\/td>\n<td class=\"light-red\">-0.02%<\/td>\n<td>\u00a0<\/td>\n<td class=\"light-red\">-0.00%<\/td>\n<td class=\"light-red\">-0.09%<\/td>\n<td class=\"light-green\">0.11%<\/td>\n<td class=\"gray\">0.00%<\/td>\n<\/tr>\n<tr class=\"fxs-major-currency-prices-currency-price\">\n<th>CAD<\/th>\n<td class=\"light-green\">0.06%<\/td>\n<td class=\"light-red\">-0.04%<\/td>\n<td class=\"light-red\">-0.03%<\/td>\n<td class=\"gray\">0.00%<\/td>\n<td>\u00a0<\/td>\n<td class=\"light-red\">-0.12%<\/td>\n<td class=\"light-green\">0.09%<\/td>\n<td class=\"light-red\">-0.02%<\/td>\n<\/tr>\n<tr class=\"fxs-major-currency-prices-currency-price\">\n<th>AUD<\/th>\n<td class=\"light-green\">0.17%<\/td>\n<td class=\"light-green\">0.10%<\/td>\n<td class=\"light-green\">0.09%<\/td>\n<td class=\"light-green\">0.09%<\/td>\n<td class=\"light-green\">0.12%<\/td>\n<td>\u00a0<\/td>\n<td class=\"light-green\">0.22%<\/td>\n<td class=\"light-green\">0.12%<\/td>\n<\/tr>\n<tr class=\"fxs-major-currency-prices-currency-price\">\n<th>NZD<\/th>\n<td class=\"light-red\">-0.04%<\/td>\n<td class=\"light-red\">-0.15%<\/td>\n<td class=\"light-red\">-0.13%<\/td>\n<td class=\"light-red\">-0.11%<\/td>\n<td class=\"light-red\">-0.09%<\/td>\n<td class=\"light-red\">-0.22%<\/td>\n<td>\u00a0<\/td>\n<td class=\"light-red\">-0.12%<\/td>\n<\/tr>\n<tr class=\"fxs-major-currency-prices-currency-price\">\n<th>CHF<\/th>\n<td class=\"light-green\">0.07%<\/td>\n<td class=\"light-red\">-0.03%<\/td>\n<td class=\"light-red\">-0.01%<\/td>\n<td class=\"light-red\">-0.01%<\/td>\n<td class=\"light-green\">0.02%<\/td>\n<td class=\"light-red\">-0.12%<\/td>\n<td class=\"light-green\">0.12%<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p class=\"fxs-major-currency-prices-currency-prices-legend\">The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)\/USD (quote).<\/p>\n<\/div>\n<\/div>\n<div class=\"module_faqs_cke post-module\">\n<div data-config-category=\"Forex\" data-config-topic=\"jpy\" data-content-module-translate=\"0\" data-module=\"faq\" data-type=\"faq\" data-version=\"v1\" id=\"content-module-faq-Forex-jpy-401\">\n<div class=\"fxs-faq-module-wrapper\">\n<h2 class=\"fxs-faq-module-title\">Japanese Yen FAQs<\/h2>\n<div class=\"fxs-faq-module-container\">\n<section class=\"fxs-faq-module-section\">\n<p class=\"fxs-faq-module-content\">The Japanese Yen (JPY) is one of the world\u2019s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan\u2019s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors.<\/p>\n<\/section>\n<section class=\"fxs-faq-module-section\">\n<p class=\"fxs-faq-module-content\">One of the Bank of Japan\u2019s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The current BoJ ultra-loose monetary policy, based on massive stimulus to the economy, has caused the Yen to depreciate against its main currency peers. This process has exacerbated more recently due to an increasing policy divergence between the Bank of Japan and other main central banks, which have opted to increase interest rates sharply to fight decades-high levels of inflation.<\/p>\n<\/section>\n<section class=\"fxs-faq-module-section\">\n<p class=\"fxs-faq-module-content\">The BoJ\u2019s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supports a widening of the differential between the 10-year US and Japanese bonds, which favors the US Dollar against the Japanese Yen.<\/p>\n<\/section>\n<section class=\"fxs-faq-module-section\">\n<p class=\"fxs-faq-module-content\">The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen\u2019s value against other currencies seen as more risky to invest in.<\/p>\n<\/section>\n<\/div>\n<\/div>\n<\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Japanese Yen gains ground after the release of the Tokyo CPI data on Friday. The JPY\u2019s downside may be limited as traders may continue unwinding their carry trades ahead of the BoJ meeting. The US Dollar may limit its downside\u00a0as recent US economic data have reduced rate cut expectations for September. The Japanese Yen [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":13094,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,255,1062,250,333,277,252,247,253,249,5212,275,256,254],"class_list":["post-352466","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-gta","tag-japan","tag-looks-rare","tag-macroeconomics","tag-majors","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-seo","tag-usdjpy","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/352466","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=352466"}],"version-history":[{"count":3,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/352466\/revisions"}],"predecessor-version":[{"id":352475,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/352466\/revisions\/352475"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/13094"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=352466"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=352466"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=352466"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}