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The USDJPY has undergone a significant decline
penetrating the mid-148 yen threshold during the London trading session.
“In the latest developments within the foreign exchange market, the USD/JPY has undergone a significant decline, penetrating the mid-148 yen threshold during the London trading session”
This descent, coupled with a downturn in cross-yen pairs, signals a dominant trend of yen strength. Furthermore, heightened pressure on the USD is evident, stemming from a temporary cessation in the ascent of U.S. bond yields. Throughout London trading hours, the USD/JPY sustained its losses, breaching the 149 yen level once again and settling around 148.20. Despite an earlier surge in U.S. bond yields, the USD/JPY retained a subdued stance. Cross-yen pairs uniformly registered a decline, witnessing EUR/JPY sliding from the late 162 yen range to the early 162 yen range, GBP/JPY dropping from approximately 186 yen to the mid-184 yen level, and AUD/JPY descending from the late 97 yen range to the early 97 yen range. The yen’s appreciation has demonstrated persistence since the latter part of the preceding week, with ongoing corrective pressures exerting influence.
The USD/JPY is currently trading within the mid-148 yen range, having depreciated from the earlier high near 149.99 in the early Tokyo session to below 149 yen in the afternoon. Despite a marginal rebound to approximately 149.20, selling pressure has reinvigorated during the London session, driving the pair to hover around 148.20. The USD/JPY encountered resistance even amidst periods of escalating U.S. bond yields, and conversely, it maintained a top-heavy position during declining bond yields. This underscores the persistent trend of yen appreciation initiated in the latter part of the preceding week.
Turning to the EUR/USD, it is presently trading within the early 1.09 range, commencing the Tokyo session near 1.0898 and gradually ascending to the early 1.09 range. During the London session, it further advanced to around 1.0940 amid a phase of diminishing U.S. bond yields. However, the descent of EUR/JPY has acted as a constraining factor, resulting in a gradual upturn for the EUR/USD. Both the EUR/JPY and USD/JPY experienced a decline, with the former reaching a peak around 163.56 in the early Tokyo session and subsequently softening to the current level of approximately 162 yen. Trading dynamics against the pound exhibited some cross-currents, but a subtle inclination towards euro buying was discernible.
In the realm of GBP/USD, it is currently trading within the late 1.24 range, initiating the Tokyo session near 1.2446 and maintaining relative resilience thereafter. In the early London session, it reached a pinnacle around 1.2510; however, a retracement to approximately 1.2470 has occurred, with the upside continuing to exhibit resistance. The GBP/JPY, which commenced the Tokyo session near 186.80, attained a peak but underwent a sharp decline during the London session, presently trading within the mid-184 yen range. The EUR/GBP has ascended from the 0.8740 range to the 0.8760 range, indicative of a prevalent trend of pound selling.
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