USD/JPY has climbed above 162 as the gap between US and Japanese interest rates continues to favour the US dollar.
The next major news event is US economic data. Upcoming jobs data will shape expectations for Federal Reserve interest rates.
Stronger-than-expected data could increase expectations for Fed rate hike, push US yields even higher, supporting further gains in USD/JPY and increasing the chances of intervention from Japanese authorities. The US-Japan 2-year yield gap is now approaching 280 basis points, wider than when Japan last intervened in the currency market.
Japanese equities are also benefiting from the weaker yen. The Nikkei remains near record highs as exporters and AI-related stocks continue to perform well, meaning any shift in the US dollar could also influence Japan’s stock market.
With BlackBull Markets, traders can access USD/JPY with Prime spreads from 1 point and leverage up to 1:500, alongside JPN225 with spreads from 5 points.
Trading involves risk and may not be suitable for all investors. The information provided in this article is for educational purposes only and does not constitute financial advice. Always conduct thorough research and seek professional advice before making any investment decisions.
