The USD/JPY pair retreated early Wednesday reaching its pre-intervention levels, as market jitters remain which drove investors to increase demand for low yielding currencies.
On the other hand, the Japanese currency advanced against other majors despite comments from the Japanese Finance Minister saying that the government is monitoring the yen’s movements, and another intervention in the FX market could be witnessed.
The USD/JPY pair remained aggressively bearish as the pair is near the post-war lows, where the Japanese yen had the strongest performance against the majority of its major counterparts on concerns over the global economic outlook.
On Thursday at 23:50 GMT (Wednesday), Japan will release the merchandise trade balance for July, where it’s expected to show a surplus of 71.0 billion yen from the previous surplus of 70.7 billion yen.
The adjusted merchandise trade balance for July had a previous deficit of 191.2 billion yen and expected to show a deficit of 152.5 billion yen.
At 05:00 GMT, Japan will release coincident index for June, where it had a previous reading of 108.6, while the leading index for June had a previous reading of 103.2.
The U.S. economy is to release the consumer price index for July at 12:30 GMT, where it is expected to rise by 0.2% following 0.2% drop, and on the year expected at 3.3% from the prior reading of 3.6%.
At 12:30 GMT, U.S. economy will release the weekly initial claims numbers, where the number of people filing for first-time claims for the state unemployment insurance eased to 395 thousand last week.
The U.S. leading indicators for July will be released at 14:00 GMT and expected with 0.2% rise following 0.3%. The Philadelphia Fed for August is expected to come at 4 from the prior reading of 3.2.
At 14:00 GMT, the U.S. economy will release the existing home sales for July, where it’s expected to come at 4.94 million rising 3.5% from the previous 4.77 million.