USD/JPY attempts to refresh four-day high above 132.00 as US Inflation hogs limelight

USD/JPY attempts to refresh four-day high above 132.00 as US Inflation hogs limelight

  • USD/JPY is looking to extend gains above 132.00 ahead of US Inflation.
  • Airborne threats to the US and anxiety ahead of US Inflation have spooked market sentiment.
  • The Japanese Yen surrendered its entire gains after Kazuo Ueda cited the current policy as appropriate.

The USD/JPY pair is hovering near its day high around 132.00 in the Tokyo session. The asset is expected to refresh a four-day high above 132.00 as investors are extremely risk-averse ahead of the United States inflation report and airborne threats near the territory of the United States.

Losses by S&P500 futures have escalated further as investors are concerned that a surprise rise in the US inflation will strengthen the case of another interest rate hike by the Federal Reserve (Fed). Also, disappointing earnings by the US equities have weakened the risk appetite of the market participants. The solidifying case for more interest rate hikes by the Fed has pushed the 10-year US Treasury yields to nearly 3.75%.

The US Dollar Index (DXY) has refreshed its three-day high at 103.47 amid the risk aversion theme. Economists at MUFG expect the US Dollar to be underpinned by a strong inflation report. The rationale behind an improvement in the appeal for the US Dollar is the rise in used car prices at the start of this year. Bloomberg reported that average used-vehicle prices rose 2.5% in January according to data from Manheim.

Meanwhile, the Japanese Yen has surrendered its entire gains recorded after Nikkei Asian Review reported that the Japanese Cabinet is set to appoint academician Kazuo Ueda as the next Bank of Japan (BoJ) Governor after Haruhiko Kuroda steps down in April. Kazuo Ueda stated that the current monetary policy is appropriate, which led to a sell-off in the Japanese Yen as the Japanese government has been reiterating that the economy will consider an exit from ultra-dovish monetary policy.

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.

Read More