The Japanese Yen’s Decline and the US Dollar’s Rise: What You Need to Know
The Japanese Yen (JPY) Movement
- The Japanese Yen (JPY) has experienced a decline for the third consecutive session, influenced by concerns over delayed interest rate hikes by the Bank of Japan (BoJ).
- BoJ Governor Kazuo Ueda emphasized the central bank’s commitment to adjusting monetary easing levels as needed to achieve economic and inflation goals.
The US Dollar (USD) Trend
- The US Dollar (USD) has been bolstered by improving Treasury yields, despite expectations of further rate cuts by the US Federal Reserve (Fed) in 2024.
- Markets are pricing in a 50% chance of a 50 basis point rate cut by the end of the year, affecting the Greenback’s performance.
Market Insights and Economic Indicators
- Japan’s new “top currency diplomat” warns against increased Yen carry trades that could lead to market volatility.
- US Fed officials and Japan’s Finance Minister monitor the impact of rate cuts on their respective economies.
- Japan’s economic indicators show positive growth, with the Consumer Price Index (CPI) rising to 3.0% year-on-year in August.
Technical Analysis: USD/JPY
USD/JPY is currently testing the 144.50 level near the upper boundary of a descending channel, indicating a potential shift in momentum.
- Resistance levels at 144.70 and 145.00 may be tested if the pair breaks above the descending channel.
- Support levels at 143.76, 143.00, and 139.58 could come into play if the pair retraces downwards.
Japanese Yen Price Today
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.01% | 0.06% | 0.16% | 0.16% | -0.03% | -0.35% | -0.13% | 0.11% |
Japanese Yen weakened against the Australian Dollar, according to the latest data.
Economic Indicator: S&P Global Composite PMI
The S&P Global Composite Purchasing Managers Index (PMI) is a crucial indicator of US private-business activity, influencing the US Dollar’s performance. It varies between 0 and 100, with levels above 50 indicating economic expansion.
Stay informed about upcoming economic events and indicators to make informed financial decisions.