The USD/JPY currency pair remains bullish, while the improvement in prospects for global growth is set to deliver JPY weakness.
“The U.S. dollar is strong against the major world currencies, touching its highest level in more than two weeks, hovering just below levels last seen in February. The Japanese yen is weak, underperforming with a 1.2% decline from Wednesday’s close. This currency has fallen at levels last seen ahead of the Bank of Japan disappointment from July”, said Marius Ghisea, President and CEO of MS Capital Consulting.
Despite this strong volatility, a rate hike is possible. This would mark the first rate move by the Fed since December last year.