USD/JPY JUMPS ABOVE 143.50, FOCUS SHIFTS TO BOJ RATE DECISION

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  • USD/JPY edges higher to 143.55 in Thursday’s Asian session, up 0.90% on the day. 
  • The Fed lowered interest rates for the first time in more than four years with a bigger-than-usual reduction. 
  • The BoJ is anticipated to stand pat at its policy meeting on Friday. 

The USD/JPY pair gains traction around 143.55 on Thursday during the early European session. The uptick of the major pair is bolstered by the recovery of the US Dollar (USD). Investors will shift their attention to the Bank of Japan (BoJ) interest rate decision on Friday. 

The Federal Reserve (Fed) cut its interest rates by 50 basis points (bps) to 4.75%- 5.00% at the September meeting on Wednesday. Fed Chairman Jerome Powell stated during the press conference that the move was "strong" but needed as price rises ease and job market concerns grow.

Fed policymakers lowered their GDP growth forecast for 2024 to 2%, down from the previous projection of 2.1%. Fed officials raised their projection for the long-run federal funds rate to 2.9% from 2.8%. The Greenback swung between gains and losses after the Fed decision. 

Meanwhile, the USD Index (DXY), a measure of the USD's value relative to the majority of its most significant trading partners, bounces off multi-month lows and reclaims the 101.00 barrier, gaining 0.20% on the day. However, the dovish stance of the US Fed and the expectation of additional rate cuts this year could weigh on the USD and limit the upside for the pair.



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