USD/JPY remains strong around 161.40 in Wednesday’s early Asian session. Fed’s Powell said US inflation is cooling again, butmore evidence would be needed before the Fed would cut rates. The monetary policy divergence between Japan and the US exerts some selling pressure on the Japanese Yen. Market players remain focused on the possible foreign exchange intervention from the Bank of Japan , which might cap the pair’s upside. The final print of Japan’s Jibun Bank Services PMI is due on Wednesday.
While the level of JPY is one factor to consider, officials also focus on the pace of depreciation as the intent of intervention is to curb excessive volatility,” said OCBC analysts. Japanese Yen FAQs What key factors drive the Japanese Yen? The Japanese Yen is one of the world’s most traded currencies.