Japanese Yen's Technical Outlook Takes a Hit

The Japanese yen's technical outlook has become increasingly uncertain following Tokyo's rate check, which is typically a precursor to intervention. According to Michael Boutros, Senior Market Analyst at StoneX Media, this step usually comes before Japan takes action in the market.

The rate check was conducted alongside Bank of Japan board member Takada's statement that policy should remain nimble and data-dependent, lifting expectations for a rate hike this month.

Meanwhile, the Federal Reserve remains focused on inflation following Jackson Hole, with fed funds futures repricing since a weaker-than-expected ADP employment report. The next test will be tomorrow's U.S. nonfarm payrolls release.