Aisha Amajida
Aisha has been working with forex industry since 2008. Currently active as independent trader and educator in financial trading and investment.
Japan is believed to have injected over 50 billion USD to support the yen exchange rate through multiple rounds of intervention.
Federal Reserve Chair Jerome Powell dismissed the possibility of a rate hike but also refrained from indicating a clear path for a rate cut. Consequently, the US dollar weakened.
Despite stronger economic growth and inflation in the Eurozone, the prospect of an ECB rate cut in June remains on the table.
Following suspected government intervention from Japan, the bullish trend in USD/JPY appears to have temporarily paused, awaiting the next catalyst.
USD/JPY reached its daily high at 160.23 and then plummeted to 155.04 within about 4-5 hours.
The PCE report confirmed stronger-than-expected inflationary pressures in the US, boosting the US dollar ahead of next week's FOMC meeting.
The Bank of Japan's policy meeting outcome has left many disappointed, leading to renewed selling of the yen.
Economic data signals slower growth in the US economy, yet inflation pressures remain unexpectedly high.
Despite persistent warnings from Japanese officials about potential currency intervention, USD/JPY climbed to its highest level since the mid-1990s at 155.17 in Wednesday's New York session.
Australian inflation data released this morning pushed back expectations for a Reserve Bank of Australia (RBA) rate cut from September to November, bolstering AUD/USD.