The Japanese Yen (JPY) is on a winning streak, gaining ground for the third day in a row. This rise in value can be attributed to a cautious approach by the Bank of Japan (BoJ) towards raising interest rates at their upcoming meeting. This sentiment has led short-sellers to exit their positions, providing additional support to the JPY.
Key figures from Japan’s economic landscape show mixed results. While the Manufacturing PMI fell to 49.2 in July, the Services PMI saw a significant surge to 53.9 from the previous month’s 49.4 reading.
Market sentiment is also influenced by CME Group’s FedWatch Tool, which now indicates a 93.6% probability of a 25-basis point rate cut by the Federal Reserve in September, putting pressure on the US Dollar (USD) and the USD/JPY pair.
Looking ahead, upcoming releases of US PMI and GDP data will provide a clearer picture of the economic conditions in the United States.
Market Analysis: Japanese Yen Strengthens Amid Risk-Off Sentiment
- The Jibun Bank Japan Manufacturing PMI dropped unexpectedly to 49.2 in July, signaling a decline in factory activity.
- Vice President Kamala Harris secures Democratic presidential nomination.
- Fed’s John Williams notes ongoing trends in neutral interest rates.
- Japan’s National CPI remains steady while Core CPI inches up.
- JP Morgan predicts no rate hike by BoJ in 2024.
- BoJ official emphasizes maintaining accommodative monetary policies.
- Reports suggest Japan intervened in currency markets and sold US Treasuries.
Technical Analysis: USD/JPY Downtrend Continues
USD/JPY is currently trading around 155.20, with a bearish bias evident on the daily chart. The RSI indicator below 50 supports a downward trend, with key support levels at 154.55 and 151.86. Resistance is seen at 157.07 and 162.00.
USD/JPY: Daily Chart
Japanese Yen PRICE Today
Check out today’s percentage changes for the Japanese Yen (JPY) against major currencies. JPY showed the strongest performance against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.08% | 0.13% | -0.33% | 0.08% | 0.27% | 0.45% | 0.06% | |
| EUR | -0.08% | 0.05% | -0.42% | -0.01% | 0.20% | 0.36% | -0.02% | |
| GBP | -0.13% | -0.05% | -0.46% | -0.06% | 0.14% | 0.32% | -0.09% | |
| JPY | 0.33% | 0.42% | 0.46% | 0.40% | 0.59% | 0.75% | 0.37% | |
| CAD | -0.08% | 0.01% | 0.06% | -0.40% | 0.20% | 0.38% | -0.03% | |
| AUD | -0.27% | -0.20% | -0.14% | -0.59% | -0.20% | 0.17% | -0.23% | |
| NZD | -0.45% | -0.36% | -0.32% | -0.75% | -0.38% | -0.17% | -0.40% | |
| CHF | -0.06% | 0.02% | 0.09% | -0.37% | 0.03% | 0.23% | 0.40% |
The heat map displays changes in major currencies against each other. For example, a positive percentage change for JPY against USD indicates a stronger JPY relative to USD.
Economic Indicator
Jibun Bank Services PMI
The Services Purchasing Managers Index (PMI) by Jibun Bank and S&P Global is a key indicator of Japan’s services sector health. A reading above 50 signals expansion, while below 50 indicates contraction. The latest value of 53.9 suggests a positive trend for the Japanese Yen.
Last release: Wed Jul 24, 2024 00:30 (Prel)
Frequency: Monthly
Actual: 53.9
Consensus: –
Previous: 49.4
Source: S&P Global
Analysis Breakdown:
The Japanese Yen is gaining strength against major currencies due to the BoJ’s hawkish stance, while the USD faces pressure from anticipated Fed rate cuts. This trend is influenced by economic data releases and market sentiment, impacting currency pairs like USD/JPY. Traders should monitor key support and resistance levels to navigate the evolving market dynamics and optimize their trading strategies.