![]() Ueda’s remarks came after a series of hawkish comments by BoJ members in recent weeks, suggesting that the central bank is preparing the markets for a policy shift. ![]() Still, the fact that Ueda said that the BoJ could eventually raise rates was enough to send the yen flying higher on Monday. This was not a signal that Ueda was changing policy, as the Governor reiterated in the interview that the BoJ would “patiently” maintain its ultra-loose policy. Portions of this page are reproduced from work created and shared by Google and used according to terms described in the Creative Commons 3.0 Attribution License.Ueda said in a newspaper interview that the BoJ could have enough data on wage growth by the end of the year to determine whether it can end negative rates. Learn about cookies and how to remove them. Removal of cookies may affect the operation of certain parts of this website. This website uses cookies to obtain information about your general internet usage. App Store is a service mark of Apple Inc. Apple, iPad, and iPhone are trademarks of Apple Inc., registered in the U.S. Telephone calls and online chat conversations may be recorded and monitored. CMC Markets Germany GmbH is a company licensed and regulated by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) under registration number 154814. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.ĬMC Markets is a reference to CMC Markets Germany GmbH. 72% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. And its key potential support can be found at 50% Fibonacci retracement, 141.45ĭisclaimer: CMC Markets is an execution-only service provider. ![]() The pivotal resistance is about 150, which is the highest level seen in October 2022. In the long-term view, the uptrend is still intact, as the pair has been moving in an ascending channel since January. The pattern increases the chance for further technical correction in the pair, and the near support can be found at the 50-day moving average of 143.63. The pair is potentially forming a bearish divergence pattern, where the RSI has its lower high while the chart established a higher high. It could have a touch-and-go moment of the 150 before a technical correction from a technical perspective. In the near term, the US August CPI data could be a catalyst for the pair to make a breakthrough. The monetary policy divergence remains the main driver for the pair to climb. However, unless a materialized action intervenes in the exchange rate, we may not see an absolute top-out pattern of the USD/JPY. The 10-year Japanese government bond yield spiked to 0.71% on Monday after the BOJ’s boss, Kazuo Ueda, signalled to bring an end to the decades-long negative interest rate by the year-end. Traders believe that the BOJ would slowly normalize its ultra-loss monetary policy, as shown by weakened demands in the Japanese government bond auction lately. Hence, the BOJ will need to intervene in the currency markets if the Yen weakens further. Also, nearly 3% inflation is above the BOJ’s target level of 2%. The government is now facing an issue that inflation was not primarily driven by consumer demand and wage growth but by higher import prices, which is not a healthy economic playout. In fact, Japan is happy to see sustainable inflation after a three-decade deflationary era. The pair fell sharply to just above 127 in the following two months, which was also due to a decline in the USD. The Bank of Japan (BOJ) intervened in the exchange rate in October 2022 when the USD/JPY rose to 152 at a point. With the Japanese Yen slumping against the US dollar towards a key psychological level of 150, bets for a BOJ’s intervention have been increasingly strengthened.
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