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The afternoon saw an increase in demand for the yen
leading to a notable decline of nearly one yen in the USD/JPY pair compared to the previous day's closing.
“The afternoon session witnessed a surge in yen demand, resulting in a significant decline of nearly one yen in the USD/JPY pair compared to the previous day’s closing rate”
After touching approximately 144 yen in the overseas market, the pair managed to regain some ground and settled in the upper 144 yen range, leading to a period of indecisive trading. In the Tokyo market, investor sentiment leaned towards risk aversion, driven by lackluster performances in the Nikkei average and Asian stocks.
This prompted heightened yen buying pressure, causing the pair to breach the key support level of 144 yen during the afternoon session. Furthermore, the decline in US stock index futures during after-hours trading further fueled yen appreciation, pushing the pair down to around 143.68, with the dollar trading at a lower level.
Similar downward pressure was observed in the euro-yen pair, as it slipped below 156 yen in the afternoon, registering a decline of over one yen compared to the previous day’s closing rate and reaching approximately 155.85 yen. The pound also weakened against the yen, reaching a level around 182.57, which marked the lowest point in approximately a week since June 30. Notably, the yen demonstrated strength across major currency pairs.
Turning to the euro-dollar pair, it initially faced weakness in the afternoon, dropping to around 1.0834, the lowest level in three weeks since June 15. However, it later managed to recover from the decline, showcasing resilience in the face of market pressures.
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