Investors hold positions before US PCE data and Fed Chair remarks at Jackson Hole, capping volatility near 159.30.
The US Dollar advances against the Japanese Yen, pushing USD/JPY to 159.32 in early European trading as markets await critical economic releases. The pair remains near multi-week highs, driven by Japan’s fiscal concerns and the Bank of Japan’s ultra-low interest rates compared to other major central banks.
USD/JPY has climbed steadily since early August, forming higher lows and highs, with technical indicators signaling moderate bullish momentum. The Relative Strength Index stands at 58, while the MACD histogram supports upward pressure. However, intervention fears limit sharp declines in the Yen.
Traders are focused on Wednesday’s US PCE Price Index and Fed Chair Kevin Warsh’s Friday speech at Jackson Hole. Markets will assess the Fed’s inflation stance and potential policy shifts amid US Treasury bond repurchase plans.