Created
: 2024.07.01
2024.07.01 15:10
The Japanese Yen (JPY) remains tepid on Monday near its lowest level of 161.28 since 1986. However, its downside seems limited as an upbeat Japan's business confidence data lifted market sentiment. Additionally, the expected speculations about an imminent intervention by Japanese authorities support the JPY.
Japan's Tankan Large Manufacturing Index rose to 13 in the second quarter from the previous reading of 11. The index hit the highest level in two years amid an improving economic outlook. Meanwhile, Japan's Jibun Bank Manufacturing PMI for June was revised slightly lower to 50 from a preliminary reading of 50.1 but remained expansionary for the second straight month.
The US Dollar (USD) depreciates as recent inflation data raises expectations of the US Federal Reserve's (Fed) deducting interest rates in 2024. The CME FedWatch Tool indicates that the likelihood of a Fed rate cut in December by 25 basis points has increased to nearly 32.0%, up from 28.7% a week earlier.
USD/JPY trades around 161.00 on Monday. The analysis of the daily chart shows a bullish bias, with the pair hovering near the upper boundary of an ascending channel pattern. The 14-day Relative Strength Index (RSI) is positioned above the 50 level, indicating upward momentum.
Surpassing the upper boundary of the ascending channel pattern around 161.50 will reinforce the bullish sentiment, potentially driving the USD/JPY pair toward the psychological level of 162.00.
On the downside, immediate support appears at the nine-day Exponential Moving Average (EMA) at 159.98. A breach below this level could intensify downward pressure on the USD/JPY pair, potentially driving it toward the lower boundary of the ascending channel around 158.20. A break below this level could push the pair to test June's low at 154.55.
The table below shows the percentage change of the Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the weakest against the Euro.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
---|---|---|---|---|---|---|---|---|
USD | -0.39% | -0.09% | 0.19% | 0.02% | 0.06% | -0.03% | 0.15% | |
EUR | 0.39% | 0.07% | 0.28% | 0.10% | 0.34% | 0.06% | 0.24% | |
GBP | 0.09% | -0.07% | 0.20% | 0.04% | 0.29% | -0.02% | 0.17% | |
JPY | -0.19% | -0.28% | -0.20% | -0.17% | -0.07% | -0.22% | -0.01% | |
CAD | -0.02% | -0.10% | -0.04% | 0.17% | 0.08% | -0.05% | 0.13% | |
AUD | -0.06% | -0.34% | -0.29% | 0.07% | -0.08% | -0.28% | -0.02% | |
NZD | 0.03% | -0.06% | 0.02% | 0.22% | 0.05% | 0.28% | 0.20% | |
CHF | -0.15% | -0.24% | -0.17% | 0.01% | -0.13% | 0.02% | -0.20% |
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).
The Corporate Service Price Index (CSPI) released by the Bank of Japan measures the prices of services traded among companies. It presents price developments that reflect most sensitively the supply and demand conditions in the services market. It is also considered as an indicator for inflationary pressures. Normally, a high reading is seen as positive (or bullish) for the JPY, while a low reading is seen as negative (or bearish).
Read more.Next release: Thu Jul 25, 2024 23:50
Frequency: Monthly
Consensus: -
Previous: 2.5%
Source: Bank of Japan
Created
: 2024.07.01
Last updated
: 2024.07.01
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