MNI BRIEF: China Visitor Mobile Payments Surge in H1

MNI China Daily Summary: Friday, July 26

MNI BRIEF: Foreign Firms Content In China

MNI BRIEF: Turkish Inflation Expectations Steady- TEBA

MNI China Press Digest July 26: Deposit Rates, Fiscal, PBOC

MNI: PBOC Net Injects CNY299.05 Bln via OMO Fri

MNI: BAKER HUGHES US RIG COUNT 589; OIL RIGS 482; GAS RIGS 101

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL JUL INDEX 66.4

EZ/UK Bond Supply Calendar: BoE Short APF Operation on Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

USDJPY Approaches 142.00 Into The Close, Rising 1.10%

FOREX
  • Higher US yields and no surprises from the Bank of Japan continued to pressure the Japanese yen on Friday with USDJPY rising to a fresh trend high of 141.89 approaching the week’s close. This helped the USD index edge a little higher, stemming the significant overall pressure on the greenback in the aftermath of Wednesday’s FOMC decision.
  • Price action extends USDJPY’s intra-day rally to 1.10% as of writing, and the week’s advance to around 1.75%. Yen weakness was initially fuelled by the overnight unchanged decision from the Bank of Japan. As a reminder, the board on Friday decided unanimously to keep yield curve control policy and pledged to continue patiently with monetary easing amid high economic and financial market uncertainty. The BOJ also kept the forward guidance for the policy rates and pledged to take additional easing measures if necessary.
  • The USDJPY trend condition remains bullish and attention remains on key resistance at the top of a bull channel drawn from the Jan 16 low, which has now been pierced at 141.45. A sustained break of this hurdle would be bullish and open 142.25 the high on Nov 21, 2022.
  • Additionally, EURJPY has traded sharply higher as this week’s bull run extended and sees the pair print as high as 155.22. Price has recently cleared key resistance at 151.61, the May 2 high and an important bull trigger for the pair, confirming a resumption of the longer-term uptrend.
  • A generally optimistic tone for risk has supported the likes of GBP and CAD, the best performers in G10 on Friday. As a reminder, GBP strength comes hot on the heels of stronger-than-expected UK jobs and wage data on Tuesday, which triggered the biggest selloff in short-dated Gilts in over 8 months. The more hawkish BOE pricing has been underpinning the whole move with the technical outlook for cable improving significantly on the breach of 1.2680 an important medium-term technical break.
  • Juneteenth Independence Day holiday in the US on Monday should keep volatility contained. Highlights next week include UK CPI and flash Eurozone PMI. On the central bank slate, the Bank of England, Norges Bank and then SNB will decide on rates.
Energy BulletsCommodities
Energy BulletsCommodities

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.