Japanese Yen slumps to 153.00 against USD after initial US election results
The Japanese Yen fails to capitalize on the hawkish BoJ minutes-led modest gains.
The BoJ rate-hike uncertainty and the risk-on impulse weigh heavily on the JPY.
The US election results trigger a sharp USD rally and push the USD/JPY pair higher.
The Japanese Yen (JPY) touches a two-week high against its American counterpart during the Asian session on Wednesday after Bank of Japan (BoJ) minutes showed that the central bank will continue to hike interest rates if economic and price forecasts meet. Investors, however, seem convinced that Japan's political landscape could make it difficult for the BoJ to tighten its monetary policy further. Apart from this, a generally positive risk tone undermines the safe-haven JPY.
This, along with the emergence of strong US Dollar (USD) buying, bolstered by initial exit polls showing that the scale leans toward former President Donald Trump, triggers a goodish intraday recovery of nearly 150 pips for the USD/JPY pair. As polls continue to hit the wires, markets are expected to react sharply one way or the other. This, in turn, warrants some caution for aggressive traders and before positioning for a firm near-term direction for the currency pair.
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