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Stronger Adjustments Followed by Weaker Yen in the Morning
Reflecting Last Week's Momentum.
“Morning Session Sees Stronger Adjustments Followed by Yen Weakening”
The yen-selling trend that emerged in response to the Bank of Japan’s commitment to maintaining long-term monetary easing during last week’s policy meeting carried over into the new trading week. The USD/JPY pair surpassed Friday’s high, reaching a level of 141.97 yen. Similarly, the EUR/JPY and GBP/JPY pairs also surpassed their respective Friday highs, reaching 155.33 yen and 182.12 yen. While there was some consolidation within the higher range, the USD/JPY encountered resistance near the 142 yen mark, resulting in a temporary correction. As a consequence, the dollar weakened against the yen, with the USD/JPY pair falling to 141.44 yen.
The yen’s strength was also evident in cross-yen pairs, as the EUR/JPY reached 154.66 yen and the GBP/JPY reached 181.22 yen.
Today, with the U.S. market closed in observance of the June Teens holiday, the momentum for yen-selling lacked strength beyond significant levels. Notably, the Nikkei 225 index experienced a significant decline of 335 yen, while the Hang Seng Index in Hong Kong also witnessed a 1.1% downturn, contributing to the appreciation of the yen amidst the broader Asian stock market decline.
Within the prevailing yen-dominated market environment, dollar-based currency pairs, including the EUR/USD, exhibited limited movements, trading within a 14-point range since the morning.
Meanwhile, the Australian dollar (AUD) faced some selling pressure against the dollar. This was partially attributed to Goldman Sachs’ downward revision of China’s economic growth forecast, which triggered selling of the AUD.
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