According to FXStreet, on October 3, the USD/JPY pair continued to attract investors' attention after breaking the 50-day Simple Moving Average level the previous day. This was also the third time in the past 4 days that the pair increased in price, bringing the exchange rate to around 147.20-147.25 in this morning's trading session.
The Japanese Yen (JPY) was affected by comments from new Prime Minister Shigeru Ishiba, who said that Japan was not ready to raise interest rates further. In addition, Japan's new Economy Minister Ryosei Akazawa said that the Bank of Japan (BoJ) will carefully evaluate before raising interest rates. Political uncertainty ahead of the October 27 election also put pressure on the Yen, helping the USD/JPY pair to rise.
Meanwhile, the US dollar (USD) held on to this week's strong gains and was near a three-week high, as expectations for a sharp rate cut by the Fed in November receded. The US labor market remains strong, as shown by Wednesday's positive ADP report, adding to the attractiveness of the USD.
Technically, USD/JPY’s move above the 50-day moving average has provided fresh momentum for investors. Chart indicators also suggest that the uptrend could continue. Traders are now awaiting economic data from the US such as jobless claims and ISM Services PMI, as well as statements from the Fed, to make their next move.
According to Lao Dong, at 9:00 a.m. on October 3, the exchange rate of the Japanese Yen against the US dollar is currently hovering around 146.28-147.24 JPY/USD, a sharp increase compared to yesterday.
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