The Japanese safe haven is picking up extra pace on Monday, sending USD/JPY to fresh lows in the 100.40 area.
USD/JPY focus on US data, Fedspeak
The renewed risk aversion sentiment has been supporting the demand for the safe haven JPY at the beginning of the week, with the pair snapping a 2-day positive streak and testing the area of session lows in the 100.50/40 band.
The ongoing risk-off trade plus scepticism around the ability of the BoJ to reach its inflation targets keep sustain the momentum around the Japanese currency, while earlier comments by Governor H.Kuroda failed to remove buying pressure from JPY.
Kuroda once again reiterated the readiness of the central bank to implement the necessary measures to spur domestic inflation, adding that deepening negative rates and lowering the long-term rate target will remain key easing measures.
Later in the NA session, US New Home Sales and the Dallas Fed manufacturing gauge will be in the limelight ahead of speeches by FOMC’s N.Kashkari (2017 voter, neutral?), D.Tarullo (voter, dovish) and R.Kaplan (2017 voter, neutral?).
Regarding positioning and according to the latest CFTC report, speculative net longs in JPY have climbed to 3-week tops during the week ended on September 20, while Open Interest decreased by nearly 30K contracts.
USD/JPY levels to consider
As of writing the pair is losing 0.50% at 100.46 and a breach of 100.07 (low Sep.22) would open the door to 99.53 (low Aug.16) and then 99.08 (low Jun.24). On the other hand, the next up barrier aligns at 101.24 (high Sep.23) followed by 102.07 (20-day sma) and then 103.36 (high Sep.14).
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 extends gains due to improved risk appetite
The Australian Dollar maintained its winning streak for the fourth consecutive session on Monday, buoyed by a hawkish sentiment surrounding the Reserve Bank of Australia. This optimism bolsters the strength of the Aussie Dollar, providing support to the AUD/USD pair.
USD/JPY snaps three-day losing streak above 153.50, Yellen counsels caution on currency intervention
The USD/JPY pair snap a three-day losing streak during the Asian trading hours on Monday. The uptick of the pair is bolstered by the modest rebound of the US Dollar and US Treasury Secretary Janet Yellen’s comments on potential Japanese interventions last week.
Gold price rebounds on downbeat NFP data, softer US Dollar
Gold price snaps the two-day losing streak during the Asian session on Monday. The weaker-than-expected US employment reports have boosted the odds of a September rate cut from the US Federal Reserve. This, in turn, has dragged the US Dollar lower and lifted the USD-denominated gold.
Bitcoin Cash could become a Cardano partnerchain as 66% of 11.3K voters say “Aye”
Bitcoin Cash is the current mania in the Cardano ecosystem following a proposal by the network’s executive inviting the public to vote on X, about a possible integration.
Week ahead: BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.