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Japanese Yen Forecast: Fed and BoJ Policies Set to Influence USD/JPY Price Action
On Wednesday, September 18, trade data and machinery orders from Japan will likely influence buyer demand for the USD/JPY pair. Economists expect Japan’s trade deficit will widen from ¥621.8 billion in July to ¥1,380.0 billion in August. A growing trade deficit might reduce expectations of a Bank of Japan rate hike later this year. With a trade-to-GDP ratio of around 47%, deteriorating trade terms could affect the economy, especially the labor market and wage growth. Downward trends in wage growth may dampen demand-driven inflation, easing pressure on the BoJ to hike rates. In addition to the trade data, ... (full story)