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The USDJPY pair is currently in a consolidation phase as investors await tonight's events
Yesterday, the pair reached a high of 144.17 yen, supported by strong US indicators.
“The USD/JPY pair is currently undergoing a phase of consolidation, as market participants eagerly anticipate the upcoming events tonight”
Demonstrating resilience, the pair reached a notable peak of 144.17 yen yesterday, buoyed by robust indicators from the United States. However, a slight adjustment was witnessed at the beginning of the day, with an opening around 144.00 yen. During the morning session, profit-taking activities led to a temporary dip, causing the pair to touch 143.73 yen. Nonetheless, bolstered by the Nikkei Average’s impressive surge of over 600 points and the prevailing risk appetite for yen selling, the pair managed to rebound and recapture the 144 yen level.
Similarly, the EUR/JPY pair, which attained a peak of 157.90 yen yesterday, encountered some selling pressure in the morning session, resulting in a decline to 157.44 yen. Although some buying interest was observed, the pair remained within the range of approximately 157.70 yen.
Throughout the day, the EUR/USD pair maintained stability around 1.0950. It experienced a slight decline to approximately 1.0942 due to the downward movement observed in EUR/JPY during the morning session. Nevertheless, overall, the pair exhibited limited volatility.
Regarding GBP/JPY, it reached a notable high of 183.70 yen yesterday. However, during the morning adjustment phase, it experienced a slight dip to 183.07 yen. Despite the retreat, the pair managed to sustain its position above the key level and garnered some buying interest. Nevertheless, the subsequent rebound exhibited a relatively sluggish pace, reaching only approximately 183.30 yen.
In general, major currencies are eagerly anticipating the upcoming panel discussion, scheduled for 22:30, which will feature influential figures such as Powell, the Chair of the Federal Reserve Board; Lagarde, the President of the European Central Bank; Bailey, the Governor of the Bank of England; and Kuroda, the Governor of the Bank of Japan. It is widely expected that the United States, Europe, and the United Kingdom will communicate their intentions to adopt a more hawkish monetary policy stance, potentially exerting significant influence on the USD/JPY pair and other yen crosses.
However, given the possibility of Governor Kuroda addressing the modification of the Yield Curve Control (YCC) policy, it has become challenging for market participants to actively engage in foreign currency purchases and yen selling ahead of this pivotal event.
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