Japanese Yen: Psychological resistance and intervention fears – MUFG

FXStreet Insights Team FXStreet

MUFG’s Teppei Ino reviews recent USD/JPY trading ahead of Jackson Hole. The pair opened near 159 and repeatedly tested the 160 level, which acted as psychological resistance as traders watched for possible Japanese intervention. A US Treasury plan to expand buybacks triggered US Dollar (USD) selling, briefly pushing USD/JPY toward 158 before a rebound with recovering UST yields.

Jackson Hole focus for Dollar

"The USD/JPY opened the week at 159.19. The pair slipped below 159 during Tokyo and European trading on 17 August before reversing course as US economic data improved and oil prices rose. It continued to edge higher the following day, reaching a high of 159.78."

"The pair subsequently struggled to extend gains as 160 emerged as a psychological resistance level amid continued caution over possible intervention by the Japanese authorities. It gradually fell back toward 159 during Tokyo trading on 19 August before the US Treasury announced plans to expand UST buybacks from September."

"The announcement triggered broad-based dollar selling, pushing the USD/JPY to a low of 158.03 early in Tokyo trading on 20 August. The pair avoided a break below 158 and rebounded as UST yields recovered, returning to above 159 and erasing the previous day's decline. However, it was top-heavy around 159 at the time of writing on 21 August."

"The yen also weakened broadly outside the USD/JPY, with EUR/JPY rising above 185 for the first time since 31 July."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD holds near Feb. 11 highs as bulls await breakout above 1.3660

The GBP/USD pair trades with a positive bias around mid-1.3600s at the start of a new week and remains well within striking distance of its highest level since February 11, touched on Friday. Moreover, the fundamental backdrop favors bullish traders and backs the case for an extension of a nearly one-month-old uptrend.

EUR/USD holds steady amid US debt strategy

EUR/USD remains stronger for the fourth successive trading day, hovering around 1.1680 during the Asian hours. The currency pair holds its ground as the US Dollar struggles under pressure from newly announced United States fiscal moves. The Treasury Department surprised financial markets by pledging to at least double its buybacks of longer-dated government debt in an attempt to rein in rising bond yields.

Gold keeps rallying toward $4,700, fresh three-month highs

Gold extends its last week's stellar performance into Asian trading on Monday, refreshing three-month highs beyond $4,600. The precious metal capitalizes on persistent US Dollar weakness, following the US Treasury's buyback plan amid fresh US-Canada trade tensions.

Here's what I learned trading meme coins

I’ve been trading cryptocurrencies for the past seven years, with meme coins becoming one of the most exciting and implacable parts of my experience. I love them because they represent internet culture and community sentiment, and, let’s be honest, extreme speculation. Newly launched meme coins were especially tempting: get in early enough, I thought, and a small bet could turn into a huge return.

US Dollar Weekly Forecast: Enter Jackson, mind the (budget) Hole

It was not geopolitics, the US-Japan joint FX intervention to support the beleaguered Japanese currency or the omnipresent bets on what the Federal Reserve (Fed) might do in the second half of the year that kept the US Dollar (USD) well on the back foot over the past five days.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.