Forex
USDJPY Eyes 160.00 Again Amid Inflation Rise
The Japanese yen is facing pressure from rising inflation and falling unemployment in Tokyo. Despite this, it's losing ground against other G10 currencies. The USDJPY exchange rate is nearing its post-intervention peak of 160.00, with a current value of 159.500.
A speech by Kevin Warsh at the Jackson Hole conference could have an impact on the pair and test the pain threshold for Tokyo and Washington. Market participants are closely watching the situation.
Tokyo's core CPI rose to 1.8% YoY in August, beating expectations and further boosting expectations of Japanese rate hikes. The Bank of Japan is approaching its 2% target, with an ~84% probability of a hawkish move in September priced into markets.