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The USDJPY exchange rate has continued its trend of a weakening US dollar and a strengthening yen
reaching the 140.50 yen level.
“The USD/JPY exchange rate has exhibited a consistent pattern of a weakening US dollar and a strengthening yen, culminating in the attainment of the 140.50 yen threshold”
During the latter portion of the previous week, the USD/JPY pair has demonstrated the emergence of a strengthening yen and a weakening US dollar. In the international market, yesterday’s trading session witnessed the pair reaching a peak of 141.20 yen. Nevertheless, subsequent to some fluctuations occurring around the mid-141 yen level, the market observed a shift towards a more robust yen and a weaker dollar before noon. While there were indications of a decline in US bond yields, the overall movement was not particularly significant. It became apparent that position adjustments were taking place, specifically the unwinding of prolonged US dollar and short yen positions that had amassed during the recent period characterized by a stronger dollar and a weaker yen. The breach of the 141 yen milestone activated stop-loss orders from short-term traders, generating heightened selling pressure and propelling the pair to 141.60 yen. Following a slight retracement, the pair continued to trade within the upper range of the 140 yen territory, with a slight downward movement to 140.57 yen.
The euro-dollar pair has derived advantages from the depreciation of the US dollar. Yesterday, the euro-dollar pair, having reached the 1.0940 level in the international market, ascended to approximately 1.10 upon the opening of the Tokyo market, ultimately peaking at 1.1022.
As a consequence of the decline in the USD/JPY, the euro-yen pair experienced a brief encounter with the low level of 155 yen yesterday. As the morning progressed and the USD/JPY pair retraced slightly, the euro-yen pair escalated to 155.60 yen. Nevertheless, the euro remained in a position of weakness, subsequently revisiting the aforementioned low level of 154 yen.
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