USD/JPY is steady on Thursday, following huge gains by the pair a day earlier. At the start of the North American session, USD/JPY is trading at the 119 line. On the release front, US Unemployment Claims dropped to 287 thousand, beating expectations. Later in the day, the US releases the Philly Fed Manufacturing Index. There are no Japanese releases on Thursday, but the BOJ will release a policy statement early on Friday. An unexpected announcement could cause some movement from USD/JPY.
The Japanese yen took a tumble on Wednesday after the Federal Reserve policy statement. Previous Fed policy statements have usually stated that the Fed would maintain low rates for a “considerable time”, but the December statement changed emphasis, saying the Fed would be “patient” before raising rates. In a follow-press conference, Federal Reserve chair Janet Yellen was less ambiguous, saying that the Fed was unlikely to raise rates for the “next couple of meetings”. The markets took this to mean that a rate hike is in the works, but not before April. The yen was down sharply on the news as USD/JPY gained about 130 points on Wednesday.
Prime Minister Shinzo Abe received a new mandate on the weekend, as the ruling Liberal Democratic Party swept to victory in parliamentary elections, winning a comfortable majority in the lower house of parliament. However, Abe has been hard-pressed to prop up the weak economy and he was recently forced to scrap a controversial sales tax hike. Growth and inflation remain well below the government’s target and the BoJ’s radical monetary easing scheme has ravaged the yen, which remains close to the 120 level. With the BOJ expected to maintain or even ease its monetary stance, we’re unlikely to see much improvement from the Japanese currency in the near future.
USD/JPY 118.99 H: 119.00 L: 118.26
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.
Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Recommended Content
Editors’ Picks
EUR/USD steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.