Ella 
The Japanese yen (JPY) rose for a fourth straight session as a rise in real wages in July fueled speculation that the Bank of Japan (BoJ) could raise interest rates again before the end of 2024. Additionally, the USD/JPY pair encountered headwinds as the U.S. dollar (USD) weakened due to dovish comments from Federal Reserve officials.
Hajime Takata, a member of the Board of Directors of the Bank of Japan (BoJ), said on Thursday that “if the economy and price trends are consistent with our forecasts, we will adjust the policy interest rate in several stages.” Takata also mentioned that despite some weakness, There are signs, but Japan’s domestic economy is recovering moderately. Although stock and foreign exchange markets have experienced significant volatility, he noted that the Bank of Japan still believes that achieving its inflation target is within reach.
Traders are likely to await the release of labor market data on Friday, including U.S. non-farm payrolls (NFP), for further insight into the potential size of interest rate cuts by the Federal Reserve this month.
