The Japanese yen appears neutral against the US dollar on Wednesday. The current USDJPY exchange rate stands at 145.56.
Morning releases show that the Tankan manufacturing business expectations index for Q4 in Japan has declined to 8 points from the previous 10 points, falling short of expectations. Conversely, the same index for the services sector has increased to 30 points from the previous 27 points.
More dependent on fiscal decisions, the manufacturing sector demonstrates less positive momentum.
While the JPY exchange rate recently strengthened, it will likely be short-lived. For now, the Bank of Japan has not provided any clear indications of changes in its monetary trajectory. This means that once market sentiment shifts – and reasons for such a change might appear on Wednesday – the yen could face a decline.