By FX Empire.com
The USD/JPY pair soared to its highest level in 12 weeks, after the Bank of Japan intervened in the FX market for the third time this year, the move which came after the Japanese yen hit its highest level against the dollar at 76.54.
The unilateral intervention from the central bank aims to contain the currency appreciation against the dollar and other major currencies, which hurt the economic recovery by reducing Japan’s exports.
The BoJ explained that the recent increase in the Japanese currency was due to speculative moves, but today’s intervention pushed the dollar higher to cover all its previous losses against the yen.
On the other hand, Japanese officials indicated that the door is still open for more intervention until the currency reflects the real economic situation. While other major currencies used this current weakness in the yen to record more gains.
On Tuesday, the U.S. economy will issue the Construction Spending for September at 14:00 GMT, where it’s expected to come at 0.3% from the prior reading of 1.4%.
The ISM Manufacturing for October will be released at the same time, and expected at 52.3 from the previous reading of 51.6.
