The US Dollar reached a 34-year high against the Japanese Yen on Wednesday, hitting levels not seen since 1990. The Bank of Japan (BoJ) is expected to address the impact of the Yen’s depreciation, hinting at possible intervention in the currency markets.
Upcoming US economic data, including Gross Domestic Product (GDP) and Personal Consumption Expenditure (PCE) Price Index inflation numbers, will be closely watched by investors. Expectations are for a slight dip in GDP growth and steady PCE inflation.
Investors hoping for signs of rate cuts from the US Federal Reserve will be looking for weaker economic indicators. Meanwhile, the BoJ will release its Monetary Policy Statement on Friday, followed by a press conference from BoJ Governor Kazuo Ueda.
On the technical side, the USD/JPY pair has been on an upward trend, closing in the green for the fourth consecutive month. The pair has seen a significant increase since March and has surpassed the 200-day Exponential Moving Average.
In Japan, the Tokyo Consumer Price Index (CPI) for April is expected to hold steady, with some slight adjustments in Core-core Tokyo CPI inflation. Overall, the USD/JPY pair continues to show strength in the markets.