The USD/JPY has been whipsawing for the past two days due to a lack of power to move in one direction.
The US dollar maintains its higher position as inflation fears subside following the release of the FOMC minutes.
The yen has risen in value as a result of the positive economic outlook and the global recovery of COVID-19.
In the initial Asian session on Thursday, the USD/JPY struggled to find any direction. The pair remains stuck in a limited trading range with no discernible movement.
The USD/JPY is currently trading at 110.63, up 0.02 percent for the day.
The US Dollar Index (DXY) stayed firm near a 13-week high as fears of early Fed tapering faded as the central bank’s June meeting minutes revealed that substantial further progress on the economic recovery is possible, albeit progress is projected to slow.
After the Fed’s dovish approach, expectations of faster-than-expected Fed rate hikes faded, and US Treasury rates fell to 1.3 percent.
The Non-Manufacturing PMI of the Institute of Supply Management (ISM) fell to 60.1 in June, much below market estimates of 63.5.
The US currency was under pressure due to lower bond yields and weak economic statistics.
The Japanese yen, on the other hand, rose after the government raised its forecast for economic growth this year, citing strong exports and consumer spending.
According to projections, the economy would grow 3.7 percent in the fiscal year ending in March, with real gross domestic product (GDP) exceeding the $40.9 trillion recorded in October-December 2019.
On the rapid spread of the Delta coronavirus strain, investors shifted to safe haven assets, dampening the expectations for a quick global economic rebound.
Investors are currently waiting for the US Initial Jobless Claims report to provide new trade insight./n
