- The Japanese Yen attracts fresh sellers on Tuesday amid wavering BoJ rate hike expectations.
- Easing fears about Trump’s tariff plans boosts the risk sentiment and undermines the JPY.
- Hawkish Fed-inspired elevated US bond yields favor the USD bulls and support USD/JPY.
The Japanese Yen (JPY) sticks to its neutral bias against its American counterpart, with the USD/JPY pair holding steady just above mid-157.00s through the early European session on Tuesday. Comments from the Bank of Japan (BoJ) Deputy Governor Ryozo Himino further fueled uncertainty about the likely timing of when the central bank will hike rates again. Furthermore, the recent widening of the US-Japan rate differential, bolstered by the Federal Reserve’s (Fed) hawkish shift, turns out to be another factor undermining the lower-yielding JPY.
Meanwhile, reports that US President-elect Donald Trump’s top economic advisers are mulling a…
