Key Events Today:

14:00 UTC: USD – Federal Reserve Chair Jerome Powell will deliver a speech.

The Japanese yen (JPY) is strengthening against the US dollar (USD) following inflation data and the speech by Bank of Japan Governor Kazuo Ueda in parliament on Friday. Ueda stated that “the Bank of Japan raised rates in July as the economy and inflation were mostly in line with forecasts.”

Governor Ueda also noted that the stance on adjusting monetary easing measures will not change if the economy and inflation continue to align with forecasts. Ueda mentioned that the Bank of Japan’s recent policy decisions were appropriate and warned that determining the future policy course could lead to unnecessary speculation.

The USD/JPY pair is declining as the US dollar is under downward pressure due to falling treasury yields. However, the dollar gained strength after mixed data on the S&P Global Purchasing Managers’ Index (PMI) was released on Thursday.

Additionally, Federal Reserve Chair Jerome Powell is scheduled to speak at the Jackson Hole symposium later on Friday. Powell may make a statement regarding the possibility of lowering interest rates in the United States, which is highly anticipated by market participants.

Recommendations: Trade primarily with Sell orders from the current price levels.