The yen exchange rate jumped because speculators feared interven
An ascending flag pattern appears, showing the recovery of USDJPY when news about the stock market or the recent presidential appointment continues to be good for the US market.
The USD fell to its lowest stage in approximately 2 months, a improvement amplified via way of means of the pointy boom withinside the fee of the yen that triggered turmoil in worldwide foreign money markets withinside the buying and selling consultation on Wednesday and this morning (18 /7).
Bloomberg Dollar Spot Index, an index of Bloomberg information organization that measures the USD alternate charge instantaneous marketplace, fell via way of means of 0.4% on Wednesday, to its lowest stage when you consider that past due May. This morning, the index persevered persevered to fall further, whilst the yen/USD alternate charge from time to time accelerated to 155.7 yen for 1 USD.
In addition to the downward strain at the USD from the opportunity that americaA Federal Reserve (Fed) can also additionally decrease hobby costs in September, the yen additionally accelerated sharply because of hypothesis withinside the marketplace that Japanese government can preserve to interfere withinside the forex marketplace to assist the home foreign exchange charge.
The yen has accelerated in fee via way of means of approximately 4% when you consider that closing Thursday - the time while Japanese government are stated to have intervened via way of means of promoting overseas foreign money into the marketplace. Japan`s Ministry of Finance and the Bank of Japan (BOJ) can also additionally have persevered to interfere on Friday.
In addition, the yen additionally accelerated in fee due to the fact an influential Japanese flesh presser referred to as at the BOJ to elevate hobby costs to assist the yen alternate charge, and previous US President Donald Trump issued a caution approximately the devaluation fashion of the yen. yen - a component that allows Japan advantage a higher aggressive role in exports.
Before this recovery, the yen closing week fell to almost 162 yen in line with USD, its lowest stage in 38 years.
Fluctuations withinside the USD/Japanese yen alternate charge appear to have had a robust effect on different USD foreign money pairs - in step with leader strategist Valentin Marinov of Credit Agricole bank.
Usdjpysell
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USDJPY! PPI not as friendly The Dow Industrial Average average can't close at a record but closes just above 40,000
The 2-10 year yield rises to -27.3 basis points. A close here will be highest since Jan 29
Crude oil futures settle at $82.21
Stock earnings for the quarter were kicked off. What's on tap for next week?
What happens after the first rate cut. Recession? Stocks move lower?
A number of currency pairs stretched to key target levels including the NZDUSD. What next?
Keep an eye on China's Third Plenum meeting next week
Japan's Kanda: Won't say whether intervention was conducted or not
House Democratic leader Jeffries met with Biden yesterday. The read-out isn't glowing
UMich July consumer sentiment 66.0 vs 68.5 expected
Kickstart the FX trading day for July 12 w/a technical look at the EURUSD, USDJPY & GBPUSD
USDJPY → Trade Analysis | SELL SetupYou can expect a reaction in the direction of selling from the specified resistance zone
USDJPY moving higher as it tests the strong resistance level..
We expect a bearish move from the confluence zone.
Hello Traders, here is the full analysis.
I think we can soon see more fall from this range! GOOD LUCK! Great SELL opportunity USDJPY
I still did my best and this is the most likely count for me at the moment.
-------------------
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 🤝
Japanese Yen dropped to its lowest level in nearly 4 decadesAll data supports LONG usdjpy
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According to Nikkei, till now, Japanese institutional traders have now no longer poured capital into overseas markets on any such big scale. Banks offered simplest a internet 220.7 billion yen of overseas property withinside the first 1/2 of of this 12 months. Meanwhile, pension price range bought a internet of 9.forty three trillion yen withinside the identical period.
The using pressure using the float of cash into foreign places property is the organization of retail traders who're changing their financial savings into investments to deal with inflation. Core CPI in Japan has always multiplied extra than 2% every month given that fall 2022. May CPI multiplied 2.1%, better than the BOJ`s goal of 2%.
Currently, only a few monetary merchandise in Japan generate returns better than 2%. One-12 months deposits of as a minimum three million yen had hobby costs of simply beneathneath 0.1% in June. Japanese authorities bonds bought to retail traders had hobby costs of much less than 1% this month. The predicted dividend yield of Japanese shares in keeping with the Nikkei Stock Average is simplest 1.75%, nevertheless decrease than inflation.
“Investment cash has a tendency to float to Western nations and elsewhere, in which monetary and company boom expectancies are high,” stated Soichiro Tateishi, an economist on the Japan Research Institute.
When Japanese traders purchase shares or bonds denominated in USD via mutual price range with out a foreign money hedging strategy, they'll ought to promote yen to shop for USD. Accordingly, multiplied funding sports via NISA positioned even extra strain at the yen. Investors chickening out capital will assist the yen appreciate. However, NISA is a software primarily based totally on lengthy-time period investments, so the yen will now no longer be capable of get hold of momentum from here.
Meanwhile, Japan's change deficit has lengthy been taken into consideration a structural issue inflicting the yen to fall. As an electricity importer, Japan has visible a change deficit for the reason that 2011 earthquake and tsunami, which pressured the u . s . to import extra electricity because of the closure of nuclear strength plants.
From January to May 2024, Japan's change deficit stood at three.forty five trillion yen. This discern will boom to three.eighty three trillion yen while facts via mid-June are included.
Some professionals have warned approximately the capital flight of retail traders. Meanwhile, the yen is buying and selling at a hundred and sixty for 1 USD, whilst at the start of the 12 months it became 140. One manner to show the scenario round is to boom the splendor of the Japanese inventory marketplace and different monetary merchandise.
According to Shingo Ide, leader monetary engineer at NLI Research Institute, Japanese businesses “are beginning to make efforts to enhance profitability and capital efficiency.”
However, Nikkei stated, any essential exalternate to the contemporary fashion will take a protracted time.
Japan's efforts to protect the yen exchange rate fell into vain"ALL THE PROBLEM IS WITH THE FED"
On Wednesday`s buying and selling consultation, the yen fell to 160.88 yen for 1 USD, the bottom degree due to the fact that 1986. Early this morning (June 27) withinside the Asian marketplace, the yen rebounded slightly. 160.sixty three yen to at least one USD.
The yen has depreciated approximately 2% this June and fallen 12% due to the fact that the start of the yr as compared to the USD, withinside the context of a regular growth withinside the USD alternate price due to the fact expectancies approximately whilst the Fed will begin decreasing hobby prices are constantly driven back. .
The Dollar Index, which measures the power of the USD in opposition to a basket of six different predominant currencies, has accelerated 1.25% this month and is up 4.sixty three% due to the fact that the start of the yr - consistent with facts from MarketWatch. On Wednesday consultation, Dollar Index handed 106 points, the very best in 2 months.
The predominant motive of the yen devaluation as compared to the USD is the hobby price distinction among americaA and Japan. The Fed's short-time period hobby price is five.25-five.five% and the Bank of Japan (BOJ) is 0-0.1%, making the yen an appealing investment foreign money. in hobby price differential transactions (bring trade).
According to Bloomberg, international traders recognize that the yen will face downward stress so long as USD hobby prices stay high. In the worldwide foreign money marketplace with a transaction fee of 7.five trillion USD according to day, the non-stop devaluation of the yen is a clearer proof of US affect withinside the economic sector.
“The hassle is all with the Fed. Higher and longer hobby prices withinside the US are attracting cash to americaA and making the USD robust," stated leader bond funding strategist of NatAlliance Securities LLC, Mr. Andrew Brenner. Mr. Brenner stated that for Japan, that is a challenge.
Wednesday's buying and selling consultation completely contemplated America's dominant function in international economic markets. The Dollar Index's 0.4% growth this consultation positioned downward stress on nearly all different currencies withinside the world. The US inventory marketplace is on course to finish some other area of robust gains, whilst the Ministry of Finance without difficulty bought all 70 billion USD of Treasury bonds withinside the public sale at the equal day.
For the yen, the tale is absolutely different. At an alternate price of almost 161 yen to at least one USD, the foreign money has depreciated past the factor in which Japanese government intervened withinside the forex marketplace in past due April and early May. This manner efforts Spending greater than 60 billion USD to defend Tokyo's yen alternate price has "failed", however happily it handiest bogged down the price of devaluation of the yen.
Usd Jpy Intervention shortAnalysis of USD/JPY Short Signal Based on Potential Bank of Japan Intervention
The BOJ has a history of intervening in the currency market to stabilize the yen, especially when rapid depreciation threatens economic stability.
Previous interventions have led to sharp, albeit sometimes short-lived, reversals in the USD/JPY pair.
Current Economic Conditions:
Japan:
Inflation remains low, and economic growth is sluggish.
The BOJ continues with its ultra-loose monetary policy, but any signs of overheating in the exchange rate might prompt intervention.
United States:
The Federal Reserve has been relatively hawkish, focusing on controlling inflation through interest rate hikes.
This policy divergence has contributed to the USD strength against the JPY.
Market Sentiment:
Recent movements have seen the USD/JPY testing higher levels, potentially triggering concerns for the BOJ about excessive yen weakness.
Speculation of intervention can often lead to preemptive market adjustments.
Technical Analysis
Resistance Levels:
The pair may face resistance around historically significant highs, which could act as a trigger point for BOJ intervention.
Support Levels:
Key support levels will be watched to assess potential downside targets if intervention occurs.
Sustainability of BOJ Actions:
The effectiveness of BOJ interventions in reversing long-term trends is historically mixed.
Given the potential for BOJ intervention to correct an overextended yen depreciation, a short position in USD/JPY could be strategic. However, traders should closely monitor key economic indicators, BOJ communications, and technical resistance levels. Proper risk management, including stop-loss orders, is essential to navigate the inherent uncertainties and volatility associated with such interventions.
USDJPY Sell | Trade SetupUSDJPY is moving in an ascending channel between the trend lines.
The price has reached the resistance level, which has already acted as a reversal point.
We expect a decline.
Hello Traders, here is the full analysis.
I think we can soon see more fall from this range! GOOD LUCK! Great SELL opportunity USDJPY
I still did my best and this is the most likely count for me at the moment.
-------------------
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 🤝
USDJPY - Look for a long !!Hello traders!
‼️ This is my perspective on USDJPY.
Technical analysis: Here we are in a bullish market structure from 4H timeframe perspective, so I look only for long position. I want price to make a retracement to fill the imbalance lower and then to reject from bullish order block.
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USDJPY SELL | Idea Trading AnalysisUSDJPY is moving in an ascending channel, move to the resistance level and We expect a decline in the channel after testing the current level.
Hello Traders, here is the full analysis.
I think we can soon see more fall from this range! GOOD LUCK! Great SELL opportunity USDJPY
I still did my best and this is the most likely count for me at the moment.
-------------------
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 🤝
USDJPY - Expect retracement !!Hello traders!
‼️ This is my perspective on USDJPY.
Technical analysis: Here we are in a bullish market structure from 4H timeframe perspective, so I look only for long position. For now I expect price to make a retracement to fill that huge imbalance lower and then to reject from bullish order block
Fundamental news: Tomorrow (GMT+3) we have important news in USA, we will see results of CPI and Interest Rate. As well on Friday we will have news regarding Interest Rate in Japan. Pay attention to the result in order to validate the analysis.
Like, comment and subscribe to be in touch with my content!
USD/JPY Ready For Sell After Daily Closure , Are You Ready ?This Is An Educational + Analytic Content That Will Teach Why And How To Enter A Trade
Make Sure You Watch The Price Action Closely In Each Analysis As This Is A Very Important Part Of Our Method
Disclaimer : This Analysis Can Change At Anytime Without Notice And It Is Only For The Purpose Of Assisting Traders To Make Independent Investments Decisions.
USDJPY: Swing Sell Happening! AB=CD PatternFX:USDJPY
Price is currently in process of making AB=CD pattern; after USDJPY created a record Higher High, most of the traders were expecting price to drop heavy and it just did that. After dropping heavily, price made some correction and formed a AB=CD pattern which is where we can expect price to drop exactly in same amount as A to B made. Our final target is 145-147 which will be somewhere 800-1000 pips. Use proper risk management.
USD/JPY Giving Amazing Bearish P.A , Short Setup Valid Soon !This Is An Educational + Analytic Content That Will Teach Why And How To Enter A Trade
Make Sure You Watch The Price Action Closely In Each Analysis As This Is A Very Important Part Of Our Method
Disclaimer : This Analysis Can Change At Anytime Without Notice And It Is Only For The Purpose Of Assisting Traders To Make Independent Investments Decisions.
Usdjpy short USD/JPY is the forex ticker that shows the value of the US Dollar against the Japanese Yen. It tells traders how many Yen are needed to buy a US Dollar. The Dollar-Yen is one of the most traded forex pairs - second only to EUR/USD - and is a benchmark for Asian economic health and even the global economy. View the live Dollar-Yen rate with the USD/JPY chart and improve your technical and fundamental analysis with the latest USD/JPY forecast, news and analysis.usdjpy confirm signal
sell 154.92 and tp 152.10 with stop loss at 156.2..rr 2.5i sell it coz even when dollars down he not down and so many ti_me BOj talk about to intervene.
i think they will do soon and if not a big pullback have to happens
u can put ur stop lost at 155.6 if u want a bertter RR but i scare about a big leg up
💡 USDJPY: Analysis May 23USDJPY has invalidated the doji signal and continued to increase in the past session. It has now approached the previous peak at 156.7, but has not yet shown a breakout signal. This price behavior is detrimental to our current selling strategy, but we still do not encourage you to change tactics because the risk of exchange rate intervention from the BoJ is still present and the price has not yet reached its peak. than. Brothers continue to hold existing short positions, SL placed above level 156.7. In case the price continues to go up and breaks this barrier, you should temporarily stop trading and wait for new signals.
💡 H1 trend: Sideway
Today trading idea: Sell.