Currency pair stabilizes after Monday's volatility amid intervention speculation
Market focus shifts to US inflation metrics that could xrp price prediction next bull runinfluence Fed's December decision
Japanese officials maintain ambiguous stance on potential currency market actions
The USD/JPY exchange rate demonstrates limited directional movement during Tuesday's Asian trading session, hovering near the 151.70 level. This follows Monday's notable 70-pip decline that sparked discussions about possible intervention by Japanese monetary authorities to support their domestic currency. Current price action reflects a 0.05% daily gain as traders adopt cautious positions ahead of significant economic releases.
US Treasury Secretary Janet Yellen recently expressed disagreement with Moody's revised outlook for American debt, reaffirming confidence in both the domestic economy and Treasury securities as preferred safe-haven assets. These comments come at a critical juncture as financial markets attempt to gauge the Federal Reserve's future policy trajectory.
Market analysts anticipate the upcoming US Consumer Price Index (CPI) report to show modest monthly growth of 0.1% for October, with core inflation projected to maintain its 0.3% monthly pace. The annualized core CPI figure is expected to register at 4.1%, while recent Federal Reserve survey data indicates declining inflation expectations across both one-year and five-year horizons.
Should inflation metrics exceed consensus estimates, this could reinforce expectations for additional monetary tightening by the Federal Reserve during upcoming policy meetings. Such developments would likely provide renewed strength to the US dollar, potentially driving the USD/JPY pair toward recent highs.
Japanese monetary authorities continue to monitor currency fluctuations closely, with Finance Minister Suzuki emphasizing the importance of stable currency movements that reflect economic fundamentals. However, both Suzuki and Bank of Japan Deputy Governor Uchida declined to specify acceptable exchange rate levels, maintaining strategic ambiguity regarding potential intervention thresholds.
Bank of Japan officials have downplayed concerns about significant yield curve control breaches, with Monetary Affairs Department Director-General Masaki expressing confidence that 10-year Japanese government bond yields will remain contained below 1% despite recent upward pressure.
Market participants will closely analyze the US inflation data release, followed by Japan's preliminary third-quarter GDP figures scheduled for Wednesday. These economic indicators are expected to provide crucial directional signals for the USD/JPY currency pair in the near term.
【Technical analysis suggests key levels for USD/JPY】