1 min to read
The USDJPY pair experienced a morning correction
but shifted towards a stronger US dollar and weaker Japanese yen in the afternoon.
“The USD/JPY pair experienced a morning correction but shifted towards a stronger US dollar and weaker Japanese yen in the afternoon”
During the morning trading session, the USD/JPY pair encountered significant resistance near the 143.29 yen mark. Nevertheless, following a brief period of profit-taking, the involvement of London traders intensified the demand for the US dollar, propelling the pair towards the upper range of 143 yen.
Correspondingly, the Chinese yuan, which had been predominantly subjected to selling pressure against the US dollar, underwent a noteworthy appreciation. This transformation was instigated by the People’s Bank of China’s decision to establish a higher reference rate for the yuan vis-à-vis the dollar. Furthermore, news circulated regarding the selling of dollars and the purchasing of yuan in the offshore yuan market by Chinese state-owned banks, which further contributed to the yuan’s ascent. The substantial surge in the Hang Seng Index in Hong Kong further bolstered this upward trajectory, fostering a proclivity for risk-taking and attracting Chinese investors.
The Hang Seng Index observed a remarkable surge of over 2%. In conjunction with the robust performance of mainland Chinese stocks, this phenomenon propelled cross-yen transactions driven by a heightened appetite for risk, thereby elevating the EUR/JPY pair to the level of 156.80 yen. Similarly, the GBP/JPY pair reached an impressive height of 182.80 yen.
Shifting focus to the EUR/USD pair, it initially attained levels around 1.0902 before experiencing an upward movement to 1.0935 during the morning session. Nonetheless, the pair subsequently retraced slightly and entered a phase of consolidation, marking a period of stability and balanced trading.
Visit XM Official Website.
