Created
: 2024.06.28
2024.06.28 20:04
The Japanese Yen (JPY) sees traders taunting the Japanese government yet again, with another new historic low printed in the Yen's performance. This Friday 161.27 was briefly hit before falling back to below 161.00. The move comes with Japanese Finance Minister Shun'ichi Suzuki repeated the same message from Thursday that the Japanese cabinet is "watching the FX moves with a high sense of urgency", which now has lost its impact and sees markets defying the Ministry in order to take action.
Meanwhile, the US Dollar Index (DXY) - which gauges the value of the US Dollar against a basket of six foreign currencies - is of course in positive territory on the back of this action. Even if US data on Thursday did not allow the US Dollar to outperform, with Durable Goods flatlining and Pending Home Sales shrinking again for a second month in a row. All eyes this Friday on the US Federal Reserve's preferred inflation gauge: the Personal Consumption Expenditures numbers.
The USD/JPY has just printed a fresh multi-decade high this Friday. The catalyst for the move was the same as the one that triggered a bit of a recovery on Thursday: the words from Japanese Finance Minister Shun'ichi Suzuki. It becomes clear that markets have bought one time into these comments, and now want to see action, which is pushing the Japanese government into a corner and interventions are really looking inevitable.
Although the Relative Strength Index (RSI) is overbought in the daily chart, a correction could still take a few more days. Should PCE data come out further disinflationary, that would not be enough to drive USD/JPY down to 151.91. Instead, look at the 55-day Simple Moving Average (SMA) at 156.53 and the 100-day SMA at 153.81 for traders to quickly build a pivot on and try to test highs again, testing the Japanese deep pockets again.
USD/JPY Daily Chart
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the Swiss Franc.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
---|---|---|---|---|---|---|---|---|
USD | -0.06% | -0.14% | -0.18% | -0.09% | -0.19% | -0.03% | 0.04% | |
EUR | 0.06% | -0.08% | -0.14% | -0.04% | -0.14% | 0.02% | 0.09% | |
GBP | 0.14% | 0.08% | -0.08% | 0.03% | -0.06% | 0.10% | 0.15% | |
JPY | 0.18% | 0.14% | 0.08% | 0.07% | -0.01% | 0.14% | 0.23% | |
CAD | 0.09% | 0.04% | -0.03% | -0.07% | -0.11% | 0.06% | 0.11% | |
AUD | 0.19% | 0.14% | 0.06% | 0.00% | 0.11% | 0.16% | 0.21% | |
NZD | 0.03% | -0.02% | -0.10% | -0.14% | -0.06% | -0.16% | 0.05% | |
CHF | -0.04% | -0.09% | -0.15% | -0.23% | -0.11% | -0.21% | -0.05% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).
Created
: 2024.06.28
Last updated
: 2024.06.28
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