USD/JPY extends decline below 154.00, investors await US GDP data

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

■  USD/JPY remains on the defensive near 153.70 in Thursday’s early Asian session. 

■  A higher chance of a BoJ rate hike might support the JPY in the near term. 

■  Mixed US S&P PMI for July and the Fed’s dovish comments are likely to weigh on the Greenback. 


The USD/JPY pair remains under some selling pressure around 153.70, the lowest in three months, on Thursday during the early Asian session. The rising bets that the Bank of Japan (BoJ) will cut interest rates next week provide some support to the Japanese Yen (JPY) for the time being. 

The BoJ is likely to debate whether to hike interest rates again next week and unveil a plan to roughly halve bond purchases in the coming years. “This may be due to the fact that ahead of the BoJ's interest rate decision next week, more and more analysts see the risk that an interest rate hike could come now rather than in September. It will also be interesting to see what the BoJ says about its bond purchases and whether it could gradually reduce them.” said Commerzbank FX strategist Antje Praefcke. Additionally, the potential foreign exchange (FX) interventions from Japanese authorities might cap the upside for the pair. 

Multiple headwinds from the US, including a mixed US S&P Purchasing Managers Index (PMI) for July and a dovish stance from the Federal Reserve (Fed), are likely to exert some selling pressure on the USD. The US S&P Global Composite PMI rose to 55.0 in July from 54.8 in June. Meanwhile, the S&P Global Manufacturing PMI dropped to 49.5 from 51.6 in the same period, below the market consensus of 51.7. The Services PMI rose to 56.0 from 55.3, stronger than the expectation of 54.4. 

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
EUR/USD declines as US Dollar gains on hopes of easing US-China trade warEUR/USD trades lower around 1.1350 during European trading hours on Friday. The major currency pair weakens due to a recovery move in the US Dollar (USD) on hopes of an improvement in trade relations between the United States (US) and China.
Author  FXStreet
19 hours ago
EUR/USD trades lower around 1.1350 during European trading hours on Friday. The major currency pair weakens due to a recovery move in the US Dollar (USD) on hopes of an improvement in trade relations between the United States (US) and China.
placeholder
US Dollar Index rebounds above 99.50 on US trade talks progressThe US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, edges higher to near 99.75 during the early European session on Friday amid positive developments in negotiations with allies India, Japan and South Korea.
Author  FXStreet
23 hours ago
The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, edges higher to near 99.75 during the early European session on Friday amid positive developments in negotiations with allies India, Japan and South Korea.
placeholder
GBP/USD weakens to near 1.3300 ahead of UK Retail Sales releaseThe GBP/USD pair attracts some sellers to around 1.3310 during the early Asian session on Friday, pressured by the renewed US Dollar (USD) demand. The UK Retail Sales data for March will be the highlight later on Friday.  
Author  FXStreet
Yesterday 01: 09
The GBP/USD pair attracts some sellers to around 1.3310 during the early Asian session on Friday, pressured by the renewed US Dollar (USD) demand. The UK Retail Sales data for March will be the highlight later on Friday.  
placeholder
Pound Sterling recovers against US Dollar while fears of US-China trade war ebbThe Pound Sterling (GBP) bounces back to near 1.3300 against the US Dollar (USD) in Thursday’s European session.
Author  FXStreet
Apr 24, Thu
The Pound Sterling (GBP) bounces back to near 1.3300 against the US Dollar (USD) in Thursday’s European session.
placeholder
USD/CAD Price Forecast: Trades lower near 1.3850 after retreating from nine-day EMAThe USD/CAD pair retraces its gains from the previous session, trading around 1.3850 during the European session on Thursday. Daily chart technical analysis highlights a prevailing bearish trend, with the pair continuing its descent within a well-defined descending channel.
Author  FXStreet
Apr 24, Thu
The USD/CAD pair retraces its gains from the previous session, trading around 1.3850 during the European session on Thursday. Daily chart technical analysis highlights a prevailing bearish trend, with the pair continuing its descent within a well-defined descending channel.