Yen Hits 37-Year Low Against Dollar, Japan to Intervene or Not?
Action Insight Mid-Day Report 6-26-24 |
Yen Hits 37-Year Low Against Dollar, Japan to Intervene or Not? |
Yen is drawing significant attention again today as it plummeted past the crucial 160 mark against Dollar, and hit its lowest level in over 37 years. Market participants are vigilantly watching for any signs of intervention from Japanese authorities, yet no action has been taken so far. It should be emphasized again that the tone from Japanese officials appears less urgent compared to the rhetoric when Yen last approached this level in April. The focus is now on whether Yen will continue to decline towards the next potential intervention point at 165. Last week, the US Treasury added Japan to its foreign exchange monitoring list, alongside China, Vietnam, Taiwan, Malaysia, Singapore, and Germany. This inclusion has sparked speculation that it may complicate Japan's efforts to intervene in the currency market. However, it is essential to note that the US is generally less concerned about Japan propping up Yen's value compared to the cases of capping its appreciation or even pushing it down... |
USD/JPY Mid-Day Outlook Daily Pivots: (S1) 159.33; (P) 159.55; (R1) 159.90; More... Intraday bias in USD/JPY is back on the upside as recent rally resumed through 159.92 temporary top after brief consolidations. Decisive break of 100% projection of 151.86 to 157.70 from 154.53 at 160.37 will confirm long term up trend resumption, and pave the way to 161.8% projection at 163.97. On the downside, below 159.18 minor support will turn intraday bias neutral against first. But outlook will stay bullish as long as 157.70 resistance turned support holds. | |
GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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01:00 | AUD | Westpac Leading Index M/M May | 0.00% | 0.00% | 01:30 | AUD | Monthly CPI Y/Y May | 4.00% | 3.50% | 3.60% | 06:00 | EUR | Germany GfK Consumer Confidence Jul | -21.8 | -20 | -20.9 | -21 | 08:00 | CHF | UBS Economic Expectations Jun | 17.5 | 18.2 | 14:00 | USD | New Home Sales M/M May | 650K | 634K | 14:30 | USD | Crude Oil Inventories | -2.6M | -2.5M |
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