Usdjpy At Multi Month Tops

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Usdjpy At Multi Month Tops

Usd/Jpy At Multi-Month High

USD/JPY is trading at just under 156.00 handle on Thursday. If we look back, the last time USD/JPY was at these levels was on 24 July, which makes it a multi-month high.

The effects of Trump trade continues to uplift the Dollar and the USD/JPY pair along with it. Meanwhile, the stimulus plan from Japan didn't provide support to the Japanese Yen.

Boj May Intervene To Support The Jpy

Now, the traders are also wary about any intervention from the Bank of Japan. After all, the BoJ remains committed to protecting the local currency.

If we look back, the USD/JPY moved lower after the release of the PPI. At that time, investors were optimistic that it would also raise the CPI and allow the BoJ to raise the rates. However, that optimism has now faded, with the USD back in the driving seat for the USD/JPY pair.

The recent US CPI was also Dollar positive for the most part but it could have been better... For now, there's no major change when it comes to the next rate cut by Federal Reserve in December.

But if the inflation turns higher, it could provide a further boost to the US Dollar and send the USD/JPY higher.

Right now, USD/JPY is in an uptrend at all timeframes, as everyone is hopeful that Trump's policies will support the US dollar. But, the recent upside in the USD/JPY has also raised intervention fears among the market players.

Now, it remains to be seen what will be the threshold for the Bank of Japan before it intervenes in the market. Is it 157.00 or it is above the 160.00? That's a question whose answer is only known by the Japanese central bank.

But, as the USD/JPY moves closer towards the 160.00 level, the risk of intervention also rises along with it.

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