JPY momentum swings - AmpGFX
|It is hard to say why the JPY swung around so much after the FOMC, especially since US yields were still lower last week, but it may be indicative of a shift in tone for the USD; the USD may have become oversold, and the rebound in USD/JPY may be leading a correction higher, according to the analysts at Amplifying Global FX Capital.
Key Quotes
“On Friday 16 June, the Bank of Japan maintained its ultra-easy monetary policy. This was as expected, although, after a week of more hawkish central bank actions (Bank of Canada, Bank of England, Fed), the market may have been looking for some shift by the BoJ, such as de-emphasizing the size of asset purchases further in deference to yield curve control. The JPY switched from being quite strong, pressing levels near 109 after the US CPI report to falling more rapidly than other currencies after the FOMC statement, rising above 111.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.