Forex
USD/JPY Slides Towards One-and-a-Half-Week Low Amid Rising Japanese Inflation
The USD/JPY currency pair has been experiencing downward pressure, failing to extend its rebound from a one-and-a-half-week low of 158.00 on Thursday.
On Friday, the pair hovered near 158.60 during the European session, staying modestly lower and poised for its first weekly decline in three weeks.
The Japanese yen drew limited support after Japan's core CPI rose 1.8% year-on-year in July, its quickest pace since January, but this had a limited impact on the pair due to a softer US dollar and expectations of an immediate Fed move easing.
Derivative traders are advised to exercise caution when considering short positions, as historical trends show that USD/JPY is highly sensitive to sudden shifts in central bank policy.