USD/JPY Slides on Thursday: Market Update

2024-05-02
Summary:

USD/JPY Slides on Thursday, reversing gains from intervention. The dollar had been weak after the Fed's dovish meeting.

EBC Forex Snapshot, 2 May 2024

USD/JPY Slides on Thursday, reversing direction after a sudden surge that was attributed to intervention. The dollar was on the back foot after the Fed struck a conciliatory tone at its meeting.


Powell stressed it "will take longer than previously expected" for policymakers to become comfortable that inflation will resume the decline towards their target. He also saw more rate hikes as unlikely.

USDJPY

The gap between long-term government bond yields in Japan and the US is around 380 bps. The yen’s big swings could have signalled Japanese authorities see 160 as their line in the sand.

Citibank vs. HSBC Currency Pair Data Comparison

Citi (as of 29 Apr) HSBC (as of 2 May)

support resistance support resistance
EUR/USD 1.0601 1.0885 1.0621 1.0774
GBP/USD 1.2289 1.2524 1.2358 1.2631
USD/CHF 0.8999 0.9244 0.9035 0.9249
AUD/USD 0.6362 0.6668 0.6393 0.6619
USD/CAD 1.3478 1.3846 1.3629 1.3846
USD/JPY 155.00 160.20 151.36 158.81

The green numbers in the table indicate that the data has increased compared with the previous time; the red numbers indicate that the data has decreased compared with the previous time; and the black numbers indicate that the data has remained unchanged.


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