Topics

Posted 8/29/2023, 4:12:32 PM

USD/JPY retreats from fresh cycle highs following US labour market figures

The USD/JPY spiked to a cycle high but reversed course, while weak labor market figures were reported in both the US and Japan, supporting the dovish stance of the Bank of Japan.

fxstreet.com

Relevant topic timeline:

8/22/2023

Ex-BOJ official predicts no yen intervention until breach of 150 threshold

Japan is unlikely to intervene in the market unless the yen weakens past 150 to the dollar and becomes a major political issue, according to a former central bank official, who also noted that the benefits of a weak yen are becoming clearer due to the re-opening of Japan's borders.

8/30/2023

Market awaits US data and leadership

The US dollar experienced a major technical reversal due to a weaker JOLTs report, leading to a drop in US interest rates, while market positioning played a role in the price action; the focus now shifts to personal consumption figures and US jobs data, with the euro and sterling firm but most other G10 currencies softer, and emerging market currencies mixed. In Asia, most large bourses advanced, but Europe's Stoxx 600 fell after rallying in previous sessions, while US index futures traded softer; European bonds are selling up, gold is consolidating, and oil prices are firm. Australia's CPI slowed more than expected, China is expected to release the August PMI, and Japan reports July retail sales. The US dollar has seen no follow-through selling against the yen, yuan, or Australian dollar, while the euro and sterling staged impressive price action. The JOLTS report saw the dollar and US rates reverse lower, and today the US reports advanced merchandise trade figures for July, with the Canadian dollar as the worst performing G10 currency yesterday.

9/5/2023

Japan household spending suffers biggest drop in 2-1/2 years; outlook not as gloomy

Japanese household spending experienced its largest decline in almost 2-1/2 years due to rising prices; however, the impact of volatility in certain areas suggests that the outlook may not be as dire as the headline figures indicate.

9/6/2023

Japan Ramps Up Verbal Defense as Yen Sets Fresh 10-Month Low

The yen rebounded from a 10-month low against the dollar after Japan issued a strong warning about sharp currency moves, increasing the likelihood of government intervention if the slump continues.

9/11/2023

Yen Jumps vs Dollar on Expectations of BOJ Policy Shift Away from Negative Rates

The Japanese yen strengthens against the US dollar as Bank of Japan Governor Kazuo Ueda hints at a potential shift away from negative interest rates.

9/11/2023

BOJ Governor Comments Spark Big Moves in Yen and Bonds As Markets Bet on Policy Shift

The Bank of Japan's potential shift away from negative interest rate policy has ignited the Japanese Government Bond and currency markets, with the yen seeing its biggest rise in two months and the 10-year JGB yield reaching its highest point in almost a decade.

9/19/2023

USD/JPY Awaits FOMC Meeting for Direction; 148 Support Level in Focus

The USD/JPY is expected to have muted trading until the FOMC meeting tomorrow, which may provide insight into the committee's thinking and cause volatility in the pair. The pair has shown respect for the 148 level and may continue to trade sideways until a new direction is found. The USD/JPY outlook is clouded by recent changes in sentiment.

9/19/2023

Sterling Slips as Traders Brace for BoE and BoJ Policy Decisions This Week

The GBP/JPY is falling back to the midrange after failing to maintain a bullish push, while investors wait for Japan trade balance figures and the Bank of England's rate call.

9/22/2023

Yen Under Pressure as BOJ Policy Decision Looms Amid Rising US Yields and Persistent Japanese Inflation

The Japanese yen remains weak against the U.S. dollar due to high U.S. Treasury yields and anticipation of the Bank of Japan maintaining its current monetary policies, while the dollar is boosted by the prospect of higher U.S. interest rates.

Topics

Posted 8/29/2023, 4:12:32 PM

USD/JPY retreats from fresh cycle highs following US labour market figures

The USD/JPY spiked to a cycle high but reversed course, while weak labor market figures were reported in both the US and Japan, supporting the dovish stance of the Bank of Japan.

fxstreet.com

Relevant topic timeline:

8/22/2023

Ex-BOJ official predicts no yen intervention until breach of 150 threshold

8/30/2023

Market awaits US data and leadership

9/5/2023

Japan household spending suffers biggest drop in 2-1/2 years; outlook not as gloomy

9/6/2023

Japan Ramps Up Verbal Defense as Yen Sets Fresh 10-Month Low

The yen rebounded from a 10-month low against the dollar after Japan issued a strong warning about sharp currency moves, increasing the likelihood of government intervention if the slump continues.

9/11/2023

Yen Jumps vs Dollar on Expectations of BOJ Policy Shift Away from Negative Rates

The Japanese yen strengthens against the US dollar as Bank of Japan Governor Kazuo Ueda hints at a potential shift away from negative interest rates.

9/11/2023

BOJ Governor Comments Spark Big Moves in Yen and Bonds As Markets Bet on Policy Shift

9/19/2023

USD/JPY Awaits FOMC Meeting for Direction; 148 Support Level in Focus

9/19/2023

Sterling Slips as Traders Brace for BoE and BoJ Policy Decisions This Week

The GBP/JPY is falling back to the midrange after failing to maintain a bullish push, while investors wait for Japan trade balance figures and the Bank of England's rate call.

9/22/2023

Yen Under Pressure as BOJ Policy Decision Looms Amid Rising US Yields and Persistent Japanese Inflation