Here is what you need to know on Wednesday, March 27:
The Japanese Yen (JPY) continued to weaken against the US Dollar (USD), with USD/JPY reaching its highest level since 1990 near 152.00 early Wednesday. Investors will keep a close eye in the pair's action amid growing risk of a central bank intervention. The European Commission will release consumer and business sentiment data for March. The US economic docket will not feature any high-tier data releases. Federal Reserve (Fed) Governor Christopher Waller is scheduled to speak later in the American session.
Japanese Yen price this week
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies this week. Japanese Yen was the weakest against the Euro.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.21% | -0.17% | -0.13% | -0.22% | 0.23% | -0.22% | 0.69% | |
| EUR | 0.24% | 0.04% | 0.11% | 0.03% | 0.45% | 0.05% | 0.93% | |
| GBP | 0.17% | -0.04% | 0.04% | -0.03% | 0.40% | 0.00% | 0.86% | |
| CAD | 0.12% | -0.10% | -0.05% | -0.08% | 0.30% | -0.06% | 0.81% | |
| AUD | 0.23% | 0.01% | 0.06% | 0.10% | 0.44% | 0.01% | 0.92% | |
| JPY | -0.23% | -0.44% | -0.29% | -0.33% | -0.43% | -0.43% | 0.54% | |
| NZD | 0.16% | 0.00% | 0.06% | 0.09% | 0.01% | 0.43% | 0.91% | |
| CHF | -0.67% | -0.92% | -0.88% | -0.84% | -0.88% | -0.48% | -0.88% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
Several Bank of Japan (BoJ) and Japanese government officials crossed the wires during the Asian trading hours on Wednesday, looking to limit the JPY weakness with verbal interventions. Japanese Finance Minister Shunichi Suzuki repeated that they won't rule out any steps, including decisive ones, to respond to disorderly moves in the foreign exchange market. After coming within a few pips of 152.00, USD/JPY edged slightly lower but stabilized above 151.50. Bank of Japan (BoJ) board member Naoki Tamura said that they may hike rates again if upside risks to trend inflation, price outlook heighten, or the likelihood of stably hitting price goal rises further.
The USD Index staged a rebound in the American session on Tuesday and registered marginal daily gains. The index holds steady above 104.00 early Wednesday. The benchmark 10-year US Treasury bond yield continues to fluctuate in a tight channel above 4.2% and US stock index futures trade in positive territory in the European morning.
EUR/USD lost its traction and retreated below 1.0850 in the American session on Tuesday to end the day virtually unchanged. The pair moves up and down in a narrow band above 1.0800 in the early European session.
GBP/USD failed to preserve its recovery momentum and Tuesday and closed in the red. The pair stays on the back foot early Wednesday and edges lower toward 1.2600. The Bank of England will release the Financial Policy Committee statement later in the session.
Gold reversed its direction after testing $2,200 on Tuesday and retreated below $2,180. XAU/USD stays in a consolidation phase early Wednesday.
Gold price remains confined in narrow band below $2,200 mark, bullish bias seems intact.
(This story was corrected on March 27 at 07:30 GMT to say that the USD Index holds steady above 104.00, not 140.00.)
Japanese Yen FAQs
The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors.
One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The current BoJ ultra-loose monetary policy, based on massive stimulus to the economy, has caused the Yen to depreciate against its main currency peers. This process has exacerbated more recently due to an increasing policy divergence between the Bank of Japan and other main central banks, which have opted to increase interest rates sharply to fight decades-high levels of inflation.
The BoJ’s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supports a widening of the differential between the 10-year US and Japanese bonds, which favors the US Dollar against the Japanese Yen.
The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen’s value against other currencies seen as more risky to invest in.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD remains stuck in a familiar range above 0.6400
AUD/USD struggles for a firmdirection and remains confined in a multi-week-old trading range above 0.6400 early Wednesday. The RBA's dovish outlook and the domestic political turmoil remains a drag on the Aussie amid US-China spat over chips. However, a broadly weaker USD continue to support the pair.
USD/JPY bears retain control near two-week low, break below 144.00 awaited
USD/JPY languishes near a two-week low above 144.00 despite the disappointing release of Japan's trade balance data, as hawkish BoJ expectations continue to underpin the Japanese Yen. Meanwhile, the USD remains depressed amid Fed rate cut bets and a downgrade of the US government's credit rating, exerting additional pressure on the major.
Gold price looks to build on its recent strength beyond $3,300 mark
Gold price advances to over a one-week top in the Asian session on Wednesday, with bulls now awaiting a sustained move above the $3,300 mark before placing fresh bets. Moody's downgrade of US credit rating and Fed rate cut bets keep the US Dollar depressed near a two-week low. Further, persistent geopolitical uncertainty benefits the safe-haven Gold.
Ethereum Price Forecast: ETH holds steady at $2,500 despite increasing selling pressure
Ethereum (ETH) held steady above $2,500 on Tuesday despite investors stepping up their selling pressure with high profit-taking and loss realization activity.
China April slowdown shows the impact of economic uncertainty
Trade war uncertainty is denting Chinese confidence, resulting in slower economic activity in April. Retail sales and fixed-asset investment both underperformed forecasts amid heightened caution. Yet the impact on manufacturing was less than feared.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.