The Japanese Yen (JPY) is facing continued losses against the US Dollar (USD) following comments from Bank of Japan (BoJ) Deputy Governor Shinichi Uchida. Uchida emphasized the need for the central bank to maintain its current level of monetary easing, stating that rate hikes will not occur during market instability.
Uchida also highlighted the importance of monitoring economic and price impacts of policies in response to market volatility, indicating a commitment to sustaining the current degree of monetary easing. These remarks have contributed to the downward pressure on the JPY.
Meanwhile, the USD is also facing challenges as markets anticipate a significant rate cut by the US Federal Reserve (Fed) in September. According to the CME FedWatch tool, there is a 67.5% probability of a 50-basis point interest rate cut, up from 13.2% last week.
Key Market Updates
- Japan’s Chief Cabinet Secretary expects wage increases to extend to part-timers and small businesses, supported by strong Shunto results and minimum wage hikes.
- Japan’s Labor Cash Earnings data shows a 4.5% year-on-year increase in average income for June, the highest since January 1997.
- Federal Reserve Bank of San Francisco President expresses confidence in US inflation moving towards the Fed’s target.
- Chicago Fed President emphasizes readiness to act if economic conditions deteriorate.
- Bank of Japan minutes highlight concerns about rising import prices due to JPY decline.
- BoJ’s Quarterly Outlook Report suggests potential wage and inflation exceed expectations.
Technical Analysis: USD/JPY Outlook
USD/JPY is trading around 146.70, with a potential rise towards the nine-day Exponential Moving Average (EMA) at 148.57. The pair shows signs of weakening bearish momentum, with the RSI indicating oversold conditions and a possible short-term rebound.
Support levels for USD/JPY are seen at 140.25, while resistance may be encountered at the nine-day EMA around 149.22. A breakout above this level could reduce bearish pressure and lead to further upside towards 154.50.
Japanese Yen Price Today
The table below shows the percentage change of Japanese Yen (JPY) against major currencies today, with JPY being weakest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.14% | -0.13% | 1.70% | -1.70% | -0.04% | -0.37% | -0.88% | 0.59% |
| EUR | -0.14% | 0.00% | 1.60% | -1.60% | -0.18% | -0.54% | -1.02% | 0.47% |
| GBP | 0.13% | 0.27% | 0.00% | -1.85% | 0.08% | -0.28% | -0.70% | 0.72% |
| JPY | 1.70% | 1.60% | 1.85% | 0.00% | 1.73% | 2.09% | 2.54% | 1.12% |
| CAD | 0.04% | 0.18% | -0.08% | -1.73% | 0.00% | -0.34% | -0.80% | 0.64% |
| AUD | 0.37% | 0.54% | 0.28% | -2.09% | 0.34% | 0.00% | -0.42% | 1.01% |
| NZD | 0.88% | 1.02% | 0.70% | -2.54% | 0.80% | 0.42% | 0.00% | 1.43% |
| CHF | -0.59% | -0.47% | -0.72% | -1.12% | -0.64% | -1.01% | -1.43% | 0.00% |
The heat map displays the percentage changes of major currencies against one another, with JPY showing weakness against several currencies.
Analysis Summary
The Japanese Yen’s decline against the US Dollar is driven by BoJ’s dovish stance and market expectations of a Fed rate cut. This trend may impact currency exchange rates and economic conditions, emphasizing the need for careful monitoring and strategic decision-making in financial markets. Investors and individuals should stay informed about central bank policies and global economic developments to navigate potential market shifts and protect their finances.