Japanese Yen adds to strong intraday gains as USD selling remains unabated
The Japanese Yen (JPY) continues with its relative outperformance on Tuesday against a broadly weaker US Dollar (USD) and drags the USD/JPY pair further below mid-145.00s during the Asian session. The growing market acceptance that the Bank of Japan (BoJ) will hike interest rates again amid the broadening inflation in Japan marks a significant divergence in comparison to bets that theFederal Reserve(Fed) could resume its rate-cutting cycle in July. This, in turn, is seen as a key factor driving flows towards the lower-yielding JPY.
Meanwhile, reports that Japan's Economy Minister, Ryosei Akazawa, is arranging his seventh visit to the US as early as June 26 fuels hopes for an eventual US-Japan trade deal ahead of the July 9 deadline for steep US reciprocal tariffs. Furthermore, investors remain on edge as there was no immediate confirmation of a ceasefire deal by Israel or Iran, which turns out to be another factor supporting the safe-haven JPY. This, along with some follow-through USD selling, drags the USD/JPY pair away from the monthly peak touched on Monday.
Japanese Yen bulls retain control amid divergent BoJ-Fed policy expectations
USD/JPY turns vulnerable as a break below 100-hour SMA and 50% Fibo. comes in play
From a technical perspective, the downfall drags the USD/JPY pair below the 100-hour Simple Moving Average (SMA), though stalls ahead of the 50% retracement level of the recent strong move higher. Moreover, mixed oscillators on hourly and daily charts make it prudent to wait for a sustained break below the said support, around the 145.40 area, before positioning for further losses towards the 145.00 psychological mark. The latter should act as a near-term base, which, if broken decisively, might shift the bias in favor of bearish traders and prompt some technical selling.
On the flip side, the 146.00 round figure, which coincides with the 38.2%Fibonacciretracement level, now seems to act as an immediate strong barrier, above which the USD/JPY pair could climb to the 146.70-146.75 area (23.6% Fibo. level). Some follow-through buying, leading to a subsequent strength beyond the 147.00 mark, could lift spot prices to the 147.40-147.45 intermediate hurdle en route to the 148.00 round figure and 148.65 region, or the May monthly swing high.
US Dollar PRICE Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Swiss Franc.
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 US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
_300xx250.jpg)
0 댓글