All Eyes on Friday with Yen Below 160

2024-06-27
Summary:

The yen hovered near a 38-year low below 160 per dollar. Finance Minister Shunichi Suzuki said authorities would take the necessary actions.

The yen languished near a 38-year low on Thursday and struggled on the weaker side of 160 per dollar. Japanese Finance Minister Shunichi Suzuki said authorities would take necessary actions on currencies.

Tokyo's top currency official, Masato Kanda, warned on Monday that authorities were standing ready to intervene, 24 hours a day, if necessary, while reiterating they were not targeting a specific level.


Traders regard any move to prop up the yen before the PCE data as highly risky as the figures that are key to the outlook for US interest rates could immediately cancel out the impact of any premature intervention.


The country spent a record ¥9.8 trillion in its most recent bouts of intervention but the large interest rate differential has more than offset the effort.


Citi analysts expect Tokyo to act if it were to rapidly approach 162 over a few days, with a move at a slower pace unlikely to spur an intervention. They said timing could also be key.


A Friday afternoon at the tail-end of a New York trading day could prove to be a less liquid market, so technically a bigger impact will be made upon the currency move.

USDJPY

The yen remains fragile well above the 50 SMA that rejected any significant rally. But we do not see further weakening beyond 161 by Friday as the market is bracing for higher volatility ahead.


Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

​Aussie up on progress in US-China trade deal

​Aussie up on progress in US-China trade deal

The Australian dollar rose after US-China weekend talks announced a trade deal. Though details are unclear, any easing may boost sentiment.

2025-05-12
​Japan and Europe seen as shelters against tariff barrage

​Japan and Europe seen as shelters against tariff barrage

U.S. stocks fall three days in a row, hitting consumer discretionary, with Tesla's market value shrinking and capital flowing to Europe and Japan.

2025-05-09
​Pound pares gains following limited trade deal

​Pound pares gains following limited trade deal

Sterling rallied on trade deal hopes but fell to a three-week low of 1.3220 Friday after the agreement proved limited.

2025-05-09