Ella 
During Thursday’s Asian trading session, USD/JPY remained on the defensive around 144.50. Dovish comments from Federal Reserve (Fed) officials will continue to weigh on the U.S. dollar (USD) in the short term. Investors are waiting to see the preliminary value of U.S. second-quarter gross domestic product, which is expected to be 2.8%.
Bank of Japan Deputy Governor Himi Norazo said on Wednesday that if inflation remains unchanged, the Bank of Japan will continue to raise interest rates and will also pay close attention to financial market conditions.
A Reuters poll showed that most economists expect the Bank of Japan to raise interest rates again this year, starting in December rather than October.
On the other hand, dovish comments from the Federal Reserve put pressure on USD/JPY. Federal Reserve Chairman Powell said: “Now is the time to adjust policy.” The Chicago Mercantile Exchange Fed Watch Tool shows that the market is fully pricing in a 25 basis point interest rate cut by the Federal Reserve in September, and the probability of a larger rate cut. is 36.5%.
