The Japanese yen increased its value against the dollar with about 0.4% in the early New York trading session. The rate found supportive yen buyers around the previous VWAP close level on the intraday interval.
The Yen got pressured by the recent hawkish comments by the Fed policymakers which want to keep raising interest rates until inflation gets under control to calm down the surging prices.
Bank of Japan Governor Haruhiko Kuroda’s speech at the Jackson Hole symposium indicated a continuation of the current ultra-supportive monetary policy as rising inflation in the country has been largely externally driven and prices might reverse towards 1.5% in the upcoming Quarters. BOJ board member Toyoaki Nakamura also stressed the need to maintain massive stimulus to support the Japanese economy.
The Japanese yen has been pressured for several months by the interest rate hike gap between the BoJ and the other global central banks which are raising and tightening monetary policy, strengthening the dollar favored side to fight the inflationary pressure in the other economies.
The daily interval found some resistance around the upper bracket extreme which found some yen buying and dollar shorting while the rate trades above the Quarter’s, Year’s and Decade’s VWAP value areas which might be bullish biased in favor of the dollar as path of least resistance by the mentioned Fed monetary approach.
The intraday perspective trades rotational in the week’s developing value and found potential dollar longs which drive the rate higher towards the week’s upper value extreme. Yen longs may emerge around the current VWAP close level or the mentioned upper DVAH level of the week.
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