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The yen gained strength
driven by factors such as declines in Asian stocks.
“The yen exhibited strength in response to various factors, including the downward trajectory of Asian stocks”
Yesterday, the USD/JPY pair initially rose to a peak of 143.56 yen, propelled by robust outcomes from the US ADP Employment Change and ISM Non-Manufacturing PMI. Subsequently, in the Tokyo market, it commenced trading around 144.00 yen, briefly dipping to 143.80 yen due to a decline in the Nikkei average. However, it swiftly recovered, reaching approximately 144.20 yen. Throughout the morning, it maintained a relatively stable position around the 144.00 yen mark.
The persistent decline in Asian stocks further bolstered the appreciation of the yen, leading the pair to drop below the previous day’s low, approximately 143.53 yen.
Market expectations waned due to the lack of specific details in the Chinese Prime Minister’s comments regarding anticipated stimulus measures aimed at bolstering the economy. This absence of clarity contributed to an increase in risk aversion among investors.
Within the prevailing risk-averse sentiment driven by yen appreciation, the euro-yen pair initially rebounded to 156.90 yen in the morning but subsequently experienced a decline, settling around 156.20 yen. Likewise, the pound-yen pair, which had reached 183.50 yen, also declined, touching approximately 182.80 yen.
Regarding the euro-dollar pair, it remained relatively stable as market participants awaited the release of tonight’s employment statistics. Consequently, it displayed limited movement within a range of 13 points since the morning.
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