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USD/JPY holds near two-week highs as Fed inflation fears persist
The dollar index hit a seven-week high near 100.89, while traders look ahead to preliminary US S&P Global Manufacturing PMI data for September.
The Japanese yen stayed under pressure versus the US dollar, keeping the USD/JPY pair close to its two-week high. FXStreet said the pair was up 0.3% near 157.85 in the European session on Wednesday, just below the 158.05 high set on Friday.
FXStreet attributed the move to a firmer US dollar driven by warnings from multiple Federal Reserve officials about persistent inflationary pressures, including a strong demand environment. The report also noted the US Dollar Index, which tracks the greenback versus six major currencies, climbed to a fresh seven-week high near 100.89.
Looking forward, FXStreet said investors were awaiting the meeting between US President Donald Trump and China leader Xi Jinping due this week. Later, attention shifts to preliminary US S&P Global Manufacturing PMI for September, with the composite PMI expected to come in lower as both manufacturing and services activity slow.
On the Japan side, the report said markets expect potential Japanese intervention due to the yen's sharp depreciation over recent weeks. Technically, FXStreet cited USD/JPY holding above the 20-day EMA around 156.78, with support near 157.83 and room for additional upside if there are no clear technical barriers nearby.
Latest closeUSD/JPY 157.92 ▲0.3%|Dollar index 100.87 ▲0.4%