Daily Digest Market Movers: Japanese Yen benefits from the recent alleged intervention by authorities

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  • Bank of Japan data showed on Thursday that Japanese officials may have spent around ¥3.66 trillion on Wednesday to boost the domestic currency, lending support to the Japanese Yen. 
  • Japan's top currency diplomat, Masato Kanda, declined to directly confirm that intervention had occurred and said that the Ministry of Finance will disclose data at the end of this month.
  • The Federal Reserve dismissed the prospects for any further interest rate hikes despite sticky inflation, which continues to weigh on the US Dollar and exerts pressure on the USD/JPY pair. 
  • Meanwhile, Fed Chair Jerome Powell flagged no intention to cut interest rates in the near term, citing the lack of progress in the fight to bring inflation back to the central bank's 2% target. 
  • In contrast, the BoJ has indicated that accommodative financial conditions will be maintained for an extended period, which, in turn, might hold back the JPY bulls from placing aggressive bets.
  • Japan's finance minister, Shunichi Suzuki, and BoJ Governor Kazuo Ueda will hold a press conference on the sidelines of the ADB meeting at 13:45 GMT, which should provide some impetus.
  • Later, during the North American session, the release of the US jobs data, or the Nonfarm Payrolls (NFP) report, will influence the USD and determine the near-term trajectory for the USD/JPY pair.


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