Forex News: Yen Rises Amid BoJ Rate Hike Bets

Yen Rises Amid BoJ Rate Hike Bets

(RTTNews) - The Japanese yen strengthened against other major currencies in the Asian session on Tuesday, as investors talk about the Bank of Japan's latest 25 basis point rise and the likelihood of further rate hikes.

The JPY may continue to benefit from the tougher intervention language used by Japan's Finance Minister Satsuki Katayama.

Rising international tensions may also help the upturn of safe-haven Japanese yen. In the meantime, the geopolitical threats are maintained by a renewed Israel-Iran confrontation, a protracted conflict between Russia and Ukraine, and an increase in tensions between the United States and Venezuela.

In the post-meeting press conference, the BoJ Governor Kazuo Ueda made it clear that there would be additional rate increases after the BOJ raised rates to their highest level in thirty years on Friday.

In the Asian trading today, the yen rose to 4-day highs of 183.60 against the euro and 210.30 against the pound, from yesterday's closing quotes of 184.72 and 211.45, respectively. If the yen extends its uptrend, it is likely to find resistance around 180.00 against the euro and 205.00 against the pound.

Against the U.S. dollar and the Swiss franc, the yen advanced to 4-day highs of 155.91 and 197.33 from yesterday's closing quotes of 157.07 and 198.24, respectively. The yen may test resistance around 154.00 against the greenback and 195.00 against the franc.

Against the Australia and the Canadian dollars, the yen climbed to 4-day highs of 103.89 and 113.49 from Monday's closing quotes of 104.57 and 114.24, respectively. The yen is likely to find resistance around 101.00 against the aussie and 111.00 against the loonie.

The yen edged up to 90.62 against the NZ dollar, from Monday's closing value of 91.00. The next possible upside target for the yen is seen around the 89.00 region.

Looking ahead, Canada GDP for October, U.S. durable goods orders for October, U.S. GDP for the third quarter, PCE prices for the third quarter, industrial and manufacturing production for October, U.S. Consumer Board's consumer confidence for December and U.S. Richmond Fed manufacturing index for December are slated for release in the New York session.

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