The USD/JPY currency pair flipped above the 151.85 critical resistance on December 11. This price rise was due to Investors’ uncertainty about when the Bank of Japan will raise its interest rates, which is putting pressure on the yen.
December Rate Hike Hopes Diminish
Earlier hopes for a December rate hike have faded, as reports suggest the central bank feels no rush to act. Even so, some officials have mentioned the possibility of increasing rates next week if new information and market trends support that decision.
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Traders Eye Japanese Sentiment Report This Friday
Looking ahead, traders are waiting for Friday’s report on Japanese business sentiment to better understand the country’s economic health. Outside factors are also at play: a stronger US dollar keeps the yen under strain.
This comes despite recent signs that American inflation might encourage the US Federal Reserve to lower interest rates next week.