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The Japanese Yen (JPY) remains on the front foot against its American counterpart through the Asian session on Thursday, though it lacks follow-through buying amid mixed fundamental cues. Bank of Japan (BoJ) board member Toyoaki Nakamura maintains his dovish stance, which, along with the prevalent risk-on mood, acts as a headwind for the safe-haven JPY. Meanwhile, the overnight hawkish remarks by influential FOMC members, including Federal Reserve (Fed) Chair Jerome Powell, suggest that the US central bank will take a cautious stance on cutting rates. This leads to a modest bounce in the US bond yields and turns out to be another factor that contributes to capping any further gains for the lower-yielding JPY. That said, signs that the underlying inflation in Japan is gaining momentum keep the December BoJ rate hike on the table. This, along with persistent geopolitical tensions and concerns about US President-elect Donald Trump’s tariff plans, continues to underpin the safe-haven JPY and might keep a lid on any attempted intraday positive move in the USD/JPY pair.
Japanese Yen bulls turn cautious after dovish remarks from BoJ’s Nakamura
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