Image Source: Pixabay
The USD/JPY recovers sharply from 155.00 in Monday’s North American session after a sharp correction on Friday. The asset bounces back as investors doubt the capability of the Bank of Japan (BoJ) to hike interest rates again in the near term.In a meeting with business leaders in Nagoya, BoJ Governor Kazua Ueda kept hopes of more rate hikes alive by saying that the central bank will tighten the monetary policy further if the economy performs in line with its expectations. Ueda mentioned that the central bank is evaluating every factor including the risk associated with the United States (US) economy.However, Ueda stayed vague on providing a specific timing for rate hikes, which forced traders to doubt BoJ’s ability to increase interest rates further.Meanwhile, expectations of Japan’s intervention in the FX domain could offer some support to the Japanese Yen (JPY). On Friday, Japanese Finance Minister Katsunobu Kato warned of possible intervention if the yen fell too far and too fast.The US Dollar (USD) performs strongly across the board as market participants expect interest rate cuts from the Federal Reserve (Fed) would be slower and shallow. The US Dollar Index (DXY), which gauges Greenback’s value against six major currencies, clings to gains near 107.00, the highest level seen in more than a year.Fed dovish bets have been eased as investors expect the economic agenda of President-elected Donald Trump to result in higher inflation and stronger economic growth.This week, investors will pay close attention to the preliminary S&P Global PMI data for November, which will be published on Friday.More By This Author:AUD/USD Trades Cautiously Around 0.6450 Ahead Of RBA Minutes USD/CAD Conquers 1.4000 On Trump’s Clean Sweep EUR/USD Refreshes Annual Lows As US Dollar Extends Rally
