Japanese intervention to protect USD/ JPY above psychological 100

Ross J Burland FXStreet

The Nikkei has published details of Prime Minister Yoshihide Suga's request to officials at Japan's Ministry of Finance not to allow USD/JPY to fall below 100, a request that was confirmed by a number of sources.

"Make sure the yen-dollar exchange rate does not cross the 100 yen mark."

Market implication

Central bank intervention is a dangerous path to tread, just ask the Bank of England, for the market is far larger than any central bank.

However, it is a ling in the sand now for the market to be aware of and the psychology is that the market knows there will be a big buyer below 100.00 to target.

Going back as far as Sep 96, the market has rarely sustained an offer below 100 for a significant period of time until 2008 which lasted a number years until 2014.

Then, the last time the price fell below 100 was in 2016. USD/JPY reached a low of just a few pips below 99.00 and ranged between 99.5 and 107 for the summer until Nov when it rallied to the 118s.

USD/JPY has since been as low as 101.18 during the pandemic of March 2020.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD holds above 1.1500 after ECB, US PPI

EUR/USD has come under fresh selling pressure and heads toward 1.1500 in Thursday's American trading. The European Central Bank delivered rate hikes as expected, while US wholesale inflation was higher than anticipated in May.

GBP/USD extends slide below 1.3350 on renewed USD demand

GBP/USD is falling below the 1.3350 level in the American session on Thursday. Increased hawkish Fed bets and looming Mideast geopolitical risks sponsor the latest leg up in the US Dollar, particularly after the Producer Price Index jumped to 6.5% YoY in May.

Gold challenges fresh 2025 lows below $4,100

Gold trades around $4,070 a troy ounce, dangerously approaching the psychological $4,000 mark. A softer Core US Consumer Price Index eased concerns about a runaway inflation spiral, but renewed concerns surged after the higher-than-anticipated May US PPI report.

Pi Network: Recovery at risk with 16 million PI tokens ready for unlock

Pi Network edges higher after three days of consecutive losses earlier this week, extending the prevailing downtrend since late April. The scheduled unlocking of 16 million PI tokens on Thursday could add pressure to the intraday recovery. Technically, PI remains under bearish pressure.

Indonesia surprise rate hike may not be enough to save the Rupiah

The surprise rate hike from Bank Indonesia, aimed at protecting the Indonesian Rupiah from sliding further, seems to have worked for now. The rate increase definitely helps, but there’s more work to do if Jakarta wants to ease investors’ concerns for good.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.