USD/JPY Pushes Higher as Yen Lags G10 Peers Ahead of Critical Risk Events
The Japanese Yen has been underperforming its global peers as markets anticipate critical risk events. The USD/JPY pair has pushed higher, nearing key resistance levels ahead of Japan's trade and inflation data releases. As a rate hike is already fully priced into the market, traders are focusing on the Bank of Japan's guidance on future hikes.
The central bank's policy decision at the end of the week will be closely watched, with one additional BoJ hike considered almost fully priced before year-end. Domestic releases add to event risk, including trade data due at 7:50pm ET and CPI due on Friday.
Technical levels are being closely monitored, with support seen around 153 and further support expected closer to 152. Resistance is anticipated around 155, a key area for the USD/JPY pair.