According to Fawad Razaqzada, a market analyst at FOREX.com, rising oil prices combined with Bank of Japan Governor Kazuo Ueda's "less hawkish" stance during Tuesday's press conference indicate the USD/JPY exchange rate could potentially break above the 160 yen level. Razaqzada stated that investors will closely monitor oil prices, which show no inclination to decline amid stalled negotiations between the U.S. and Iran. He also noted that Wednesday's FOMC interest rate decision, key U.S. economic data, and earnings reports from major tech companies will be additional focal points. However, the analyst added that any sharp appreciation in the pair could lead to increased volatility, as markets remain wary of the risk of Japanese foreign exchange intervention. Data from the London Stock Exchange Group showed the USD/JPY rate was largely flat at 159.55 yen.
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