Select Language

USD/JPY bounces up and approaches 153.00 following upbeat US data

Breaking news

USD/JPY bounces up and approaches 153.00 following upbeat US data

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2024.10.31 22:30
USD/JPY bounces up and approaches 153.00 following upbeat US data

update 2024.10.31 22:30

  • Sticky PCE Prices Index data and an unexpected decline in Jobless Claims have provided support to the US Dollar.
  • Earlier today a hawkishly-tilted Ueda had pushed the Dollar the weekly lows right below 152.
  • The pair consolidates near highs with all eyes on the NFP report.


The Dollar's reversal witnessed during Thursday's Europen session has found support at the 152.00 area. The pair has returned to levels close to 153.00 supported by sticky inflation and lower Jobless Claims data.

The US PCE Prices Index has kept growing at a 2.1% yearly pace, as widely expected. The core reading, with higher relevance from the monetary perspective, has remained steady at 2.7% against expectations of a 2.6% reading.

Beyond that, US Jobless claims declined to 216K in the week of October 25, against market expectations of an increase to 230K, from the upwardly revised 228K in the previous week (227K initially reported).

In Japan, BoJ's Governour, Kazuo Ueda gave a fresh boost to the Yen earlier today. The bank kept interest rates unchanged but Ueda reiterated its commitment to normalizing monetary policy, hinting at a rate hike in December.

From a technical perspective, the pair remains moving within a horizontal range with investors awaiting Friday's NFP data.  Immediate support at 151.65. Below here, the next support is 150.60. Resistances are the previous support, at 152.77, and October's peak, at 153.85.
 

Japanese Yen FAQs

The Japanese Yen (JPY) is one of the world's most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan's policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors.

One of the Bank of Japan's mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen.

Over the last decade, the BoJ's stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential.

The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen's value against other currencies seen as more risky to invest in.

 


Date

Created

 : 2024.10.31

Update

Last updated

 : 2024.10.31

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

BOJ keeps policy unchanged but pledges to continue to hike rates - UOB Group

The Bank of Japan (BOJ) returned to its very succinct policy statement at its scheduled Monetary Policy Meeting (MPM) on Thu (31 Oct) as the BOJ took a unanimous decision to keep its monetary policy guidelines for money market operations unchanged, in line with market expectations but against our projection for a 25-bps rate hike, UOB Group's economist Alvin Liew notes.
New
update2024.11.01 18:36

Silver price today: Silver rises, according to FXStreet data

Silver prices (XAG/USD) rose on Friday, according to FXStreet data.
New
update2024.11.01 18:30

EUR/USD: EUR can rise to 1.0905- UOB Group

The Euro (EUR) could rise to 1.0905; the major resistance at 1.0935 is unlikely to come under threat.
New
update2024.11.01 18:21

Pound Sterling trades sideways ahead of US NFP, Manufacturing PMI data

The Pound Sterling (GBP) ties in a tight range near 1.2900 against the US Dollar (USD) in Friday's London session.
New
update2024.11.01 17:06

AUD/JPY inches lower to near 100, upside potential remains supported by hawkish RBA

The AUD/JPY pair remains subdued for the second day, hovering around 100.00 during the European session after the release of mixed Q3 Producer Price Index (PPI) data on Friday.
New
update2024.11.01 16:27

EUR/GBP remains below 0.8450, downside seems limited due to less dovish ECB

EUR/GBP inches lower after two days of gains, trading around 0.8430 during the early European hours on Friday.
New
update2024.11.01 15:56

USD/CHF trades firmer to near 0.8650 as traders await the US NFP data

The USD/CHF pair gathers strength to near 0.8640 during the early European session on Friday.
New
update2024.11.01 15:27

EUR/USD edges lower around 1.0850 due to market caution ahead of US Nonfarm Payrolls

EUR/USD halts its four-day winning streak, trading around 1.0870 during the Asian session on Friday.
New
update2024.11.01 15:13

Forex Today: Market attention turns to US October employment data

Here is what you need to know on Friday, November 1: The US Dollar (USD) stays resilient against its rivals early Friday, with the USD Index holding steady near 104.00 following a three-day slide.
New
update2024.11.01 15:05

US Nonfarm Payrolls Forecast: NFP October report set to show slower job growth

All eyes are on the market-moving Nonfarm Payrolls (NFP) data for October, to be released by the United States Bureau of Labor Statistics (BLS) on Friday at 12:30 GMT.
New
update2024.11.01 15:00

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel