USD/JPY is testing long-term highs at 154.78 with the BoJ on focus

Source Fxstreet
Apr 22, 2024 16:42
  • The US Dollar maintains a bid tone and is testing 154.78 high.
  • The Yen remains weighed by interest rate differentials between the Fed and the BoJ.
  • Friday’s BoJ momentary policy statement might give a fresh impulse to the Yen.


Nothing stops the US Dollar. Neither the moderate risk appetite seen on Monday nor the reiterated intervention warnings by diverse economic authorities, the Yen remains pinned to long-term lows near 155.00.

The pair extended its recovery on Monday, following a spike lower last week, following news of the Israeli attack on Iran. Tehran downplayed the event, suggesting its will to avoid a direct confrontation with Tel Aviv, which the market has welcomed.

This has failed to give some oxygen to a battered Yen, which is struggling on carry trade dynamics. The widening yield differential between the Yen and most of the major currencies encourages speculators to borrow JPY and exchange for higher-yielding assets elsewhere.

Adverse interest rate differentials are weighing on the JPY

Last week, an unusual joint statement from the US, Japanese, and South Korean authorities pledged to act against excessive currency volatility. This had an immediate easing impact on the US Dollar, which seems to have faded on Monday.

Yen's weakness helps Japanese exporters to sell their products on foreign markets but makes imports more expensive in the domestic ones. This has an inflationary impact on prices and forces the BoJ to accelerate its normalization pace. The Japanese central bank meets on Friday, after the release of the anticipated Tokyo CPI figures. Any hint on that lion at the bank’s statement might give some fresh impulse to the Yen.

In the US, the focus will be on Thursday’s first-quarter GDP figures and Friday’s PCE Prices Index data. This is the Fed’s gauge of choice to assess inflationary trends and might set the US Dollar’s near-term direction.

USD/JPY

Overview
Today last price 154.82
Today Daily Change 0.18
Today Daily Change % 0.12
Today daily open 154.64
 
Trends
Daily SMA20 152.54
Daily SMA50 150.88
Daily SMA100 148.16
Daily SMA200 147.66
 
Levels
Previous Daily High 154.67
Previous Daily Low 153.59
Previous Weekly High 154.79
Previous Weekly Low 152.98
Previous Monthly High 151.97
Previous Monthly Low 146.48
Daily Fibonacci 38.2% 154
Daily Fibonacci 61.8% 154.26
Daily Pivot Point S1 153.93
Daily Pivot Point S2 153.22
Daily Pivot Point S3 152.85
Daily Pivot Point R1 155.01
Daily Pivot Point R2 155.38
Daily Pivot Point R3 156.09

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
NZD/USD Price Analysis: Could test the psychological support of 0.6100NZD/USD retreats from a two-month high of 0.6140, trading around 0.6110 during the European session on Thursday.
Source  Fxstreet
NZD/USD retreats from a two-month high of 0.6140, trading around 0.6110 during the European session on Thursday.
placeholder
Mexican Peso stabilizes after dropping two days in a rowThe Mexican Peso (MXN) trades little changed during the European session on Wednesday as markets brace for the release of US Consumer Price Index (CPI) data for April, the main economic highlight of the day, and market sentiment stabilizes.
Source  Fxstreet
The Mexican Peso (MXN) trades little changed during the European session on Wednesday as markets brace for the release of US Consumer Price Index (CPI) data for April, the main economic highlight of the day, and market sentiment stabilizes.
placeholder
NZD/USD attracts some buyers above 0.6060, focus on US PPI and CPI dataThe NZD/USD pair gains traction near 0.6055 on Wednesday during the early European trading hours.
Source  Fxstreet
The NZD/USD pair gains traction near 0.6055 on Wednesday during the early European trading hours.
goTop
quote