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The Japanese yen hit a 34-year low against the dollar on Monday before rebounding, amidst speculation of official intervention. Thin trading in Japan due to Shōwa Day saw the USD/JPY swiftly rise, reaching its weakest level against the dollar since 1990. This year, the USD/JPY has gained around 12%, driven by widening bond yield differentials. While US 2-year Treasury yields rose by 75 basis points to 5%, Japan's 2-year bond…
The pair hit the highest levels since late-1986 after Friday’s BoJ policy decision and hot US inflation, but slides from the peak, sparking speculation around possible intervention from Japanese authorities
The pair drops after the European Central Bank laid the groundwork for upcoming rate cuts, while pricing for a Fed move is pushed beyond summer following the hot CPI report
US inflation accelerated according to Wednesday’s data, which raise the bar for a Fed pivot, while the Bank of Canada opened the door to a June cut
The pair jumps above the July 1990 highs as today’s data showed an acceleration in price pressures, which raises the bar for rate cuts and boosts the greenback
Having rejected pivotal resistance the pair slides and tests the EMA200 as markets brace for Thursday’s policy decision by the European Central Bank
The weekly chart shows a downside bias. However, support is holding. If the hourly chart develops bearish signals, support may be tested and if longer term downside momentum holds, support is likely to be broken.
The pair is subdued after hawkish remarks by Fed voters ahead of Friday’s PCE inflation update from the US
The pair rises to 1990s territory despite the BoJ exit from negative rates, which raises risk for FX intervention by Japanese authorities
The EURUSD is slipping as we enter this week’s trading period. Its green 5-week EMA is crossing below its orange 10-week EMA (black ellipse) as a sign of potential weakness. Its weekly RSI has dipped below 50 (green rectangle). The longer this indicator maintains on the bearish side of 50, the greater downside momentum pressure the EURUSD currency pair will face.
The pair runs another strong week and remains close to multi-decade highs, despite the historic pivot from the Bank of Japan and the Fed’s dovish bias
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