The Japanese Yen (JPY) attracts heavy selling during the Asian session on Tuesday and moves away from a six-week high touched against its American counterpart the previous day.
The Japanese Yen retreated further from a multi-week high touched against the USD on Monday. Trump’s tariff threats, rebounding US bond yields and modest USD strength support USD/JPY. The divergent BoJ- Fed expectations might keep a lid on any further upside for the currency pair.
The BoJ announced that it would provide ¥200 billion through the outright purchase of commercial paper. Separately, Japan's Economy Minister Ryosei Akazawa said that he will closely monitor the impact of the rate hike on the economy. Traders now look to Tuesday's US economic docket – featuring Durable Goods Orders, the Conference Board's Consumer Confidence Index and the Richmond Manufacturing Index – for some impetus later during the US session.
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