Japanese yen is the best performing G10 currency at the beginning of a new week. Strength of the Japanese yen as well as weakness on US dollar are translating into an around-1% drop on USDJPY today. The move higher on JPY is somewhat puzzling as it is very strong but comes without any accompanying news. However, it was not abrupt but rather the Japanese yen has been strengthening all throughout the Asia-Pacific session. This suggests that it could be changes in positioning ahead of key monetary policy events scheduled for the later part of the week.
FOMC minutes scheduled for Wednesday, 7:00 pm BST may include some dovish indications, but a key Fed-related event will occur on Friday, when Fed Chair Powell delivers his speech at Jackson Hole symposium. Also on Friday, BoJ chief Ueda will appear at a special session of the Japanese parliament, during which recent BoJ rate hikes will be discussed. In both cases traders will look for hints on the monetary policy. Ueda will likely be asked whether BoJ plans to tighten policy further, while Fed Chair Powell may use Jackson Hole speech to hint at an imminent launch of rate cut cycle in September.
إبدأ بالإستثمار اليوم أو تدرّب على حساب تجريبي
إنشاء حساب حساب تجريبي تحميل تطبيق الجوال تحميل تطبيق الجوالTaking a look at USDJPY chart at D1 interval, we can see that the pair is continuing pullback launched on Friday after a failed attempt at breaking above the resistance zone ranging above 38.2% retracement. The near-term support zone to watch in case pullback deepens further can be found ranging around 50% retracement and marked with recent local lows.
Source: xStation5
