- USD/JPY found further gains as Yen recedes post-”Yentervention”.
- US consumer sentiment survey results due on Friday.
- BoJ remains tight-lipped on FX market interventions.
USD/JPY drifted higher on Wednesday, marking in a third straight day of easy gains as the pair pares away recent losses from two suspected “Yenterventions” by the Bank of Japan (BoJ). The Yen has battled back from multi-decade lows, but progress is limited as the JPY resumes deflating across the board.
The US economic data docket is fairly light this week, with only mid-tier data on the offering until Friday’s University of Michigan Consumer Sentiment Index. The UoM’s indexed survey of consumer economic expectations for May is expected to tick down to 76.0 MoM compared to the previous month’s 77.2. The UoM Consumer Sentiment Survey hit a two-and-a-half year high of 79.4 in March.
The BoJ has gone to great lengths to neither confirm nor deny that the Japanese central bank undertook two separate currency interventions on behalf of the Japanese Yen (JPY) last week, but market participants noted that BoJ market operation reporting wildly overshot estimates, with the BoJ overspending on miscellaneous financing operations by around nine billion Yen in the first half of last week.
The economic calendar remains relatively thin for the rest of the week, and USD/JPY traders will be looking ahead to a fresh round of inflation figures from the US next week, as well as Japan’s latest Gross Domestic Product (GDP) growth figures due early next Thursday.
USD/JPY technical outlook
USD/JPY has climbed back over the 200-hour Exponential Moving Average (EMA) at 155.04 in the mid-week market session, ticking into a fresh high near 155.70 and set for a run at the 156.00 handle. The pair has risen around 2.5% unimpeded from last week’s swing low below 152.00.
USD/JPY closed on a third consecutive trading day in the green on Wednesday, and despite possible “Yenterventions”, the pair found technical support from the 50-day EMA at 152.72 and continues to trade well into bull country. The pair is up over 10% for the year.
USD/JPY hourly chart
USD/JPY daily chart
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 holds gains near 0.7000 amid PBOC's status-quo, Gold price surge
AUD/USD is clinging to mild gains near 0.7000 early Monday. The pair benefits from a risk-on market profile, China's steady policy rates and surging Gold and Copper prices. Focus now remains on Fedspeak for fresh impetus.
Gold price hits an all-time high to near $2,440
Gold price (XAU/USD) climbs to a new record high near $2,441 during the Asian trading hours on Monday. The bullish move of the precious metal is bolstered by the renewed hopes for interest rate cuts from the US Federal Reserve (Fed).
EUR/USD gains ground above 1.0850, focus on Fedspeak
The EUR/USD pair trades on a stronger note around 1.0875 on Monday during the early Asian trading hours. The uptick in the major pair is bolstered by the softer Greenback. The Federal Reserve’s Bostic, Barr, Waller, Jefferson, and Mester are scheduled to speak on Monday.
AI tokens could really ahead of Nvidia earnings
Native cryptocurrencies of several blockchain projects using Artificial Intelligence could register gains in the coming week as the market prepares for NVIDIA earnings report.
Week ahead: Flash PMIs, UK and Japan CPIs in focus. RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.