USD/JPY Mixed as Markets Digest News Around Ukraine
USD/JPY - H4
The Japanese Yen benefited more than the US Dollar from a late-Friday risk-off wave due to fresh fears of escalation in Ukraine and the pair had ended that day lower, but the week was profitable. The current one begun in a better mood and at the start of today's European session, we see some optimism around Ukraine, helping the pair rebound form earlier losses.
The situation however is volatile, and caution is needed, as markets react to flurry of news and reports. The united states have repeatedly warned of imminent Russian invasion, while US secretary of State Anthony Blinken announced on Monday the relocation of the US Embassy in Ukraine "due to the dramatic acceleration in the buildup of Russian forces" [1]. German Chancellor Olaf Scholz is expected to meet Russian President Putin to discuss the situation.
Other than that, Japan's annualized Q4 GDP registered a solid expansion of 5.4% in the fourth quarter of 2021, while Fed's Mr Bullard (hawk and voter), commented that "I do think we need to front-load more of our planned removal of accommodation than we would have previously. We've been surprised to the upside on inflation. This is a lot of inflation", speaking on CNBC yesterday. [2]
Technicals seem to be in the background for now, although not much has changed from our last analysis. USD/JPY covers earlier losses and keeps January's multi-year highs in sight (116.35), but sustained improvement is sentiment will be required for an advance beyond that level.
The US Dollar had failed to take out this level last week, while markets remain on edge. As such, it is still exposed the key 115.05-114.85 area that had contained Friday's slump, but a breach could open the door towards 114.14.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
References
| Retrieved 15 Feb 2022 https://www.state.gov/operations-at-u-s-embassy-kyiv/ | |
| Retrieved 19 Apr 2026 https://www.youtube.com/watch |
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