The USD/JPY pair has retraced some of its earlier gains, as the US Dollar has weakened slightly following its recent rally. The market is now focused on upcoming US economic data, which could provide clues about the Federal Reserve’s future monetary policy.
Key Factors:
- US Economic Data: Investors are closely watching US economic indicators, including JOLTS Job Openings, PCE Price Index, GDP data, and the Nonfarm Payrolls report.
- Fed Rate Expectations: The market is pricing in a 25 basis point rate cut in November and December, but the actual path of monetary policy will depend on incoming economic data.
- Japanese Yen Weakness: The Japanese Yen has weakened due to political uncertainty and the Bank of Japan’s accommodative monetary policy.
