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There was a significant moment as the USDJPY surpassed the key level of 145 yen
but subsequently, the market was driven by a corrective tone.
“There was a significant moment as the USDJPY surpassed the key level of 145 yen, but subsequently, the market was driven by a corrective tone”
During the morning trading session, a significant event unfolded as the USD/JPY currency pair surged beyond the key threshold of 145 yen. However, the market sentiment swiftly shifted towards a corrective mode thereafter.
This upward momentum in the USD/JPY can be attributed to the positive revision of the US GDP for the first quarter and the encouraging figures reported in initial jobless claims across overseas markets the previous day. As trading commenced in Tokyo, the dollar continued to exhibit strength against the yen, with the exchange rate hovering around 144.90 yen. Encouraged by this prevailing trend, market participants attempted to breach the significant milestone of 145 yen, briefly reaching a high of 145.07 yen. Notably, this price action was influenced by yen-selling activities observed during the midday session and the disappointing growth figures revealed in the morning’s Tokyo Consumer Price Index announcement.
However, as the market approached this significant level, a subsequent correction took hold, exerting selling pressure on the dollar and triggering a surge in yen buying. Finance Minister Suzuki’s remarks regarding the necessity of appropriate responses to excessive market movements further propelled the selling of the dollar. Consequently, the USD/JPY pair experienced fluctuations, oscillating around the 144.70 yen mark, ultimately eroding the earlier gains made in the attempt to breach 145 yen, and settling at 144.60 yen.
Similarly, the euro-dollar currency pair, which had previously declined from around 1.0940 to the mid-1.08 range following the strength of US economic indicators in overseas markets the previous day, continued to trade within the mid-1.08 range in the Tokyo market. Although there were attempts to test the previous day’s low of 1.0860, the euro-dollar pair managed to avoid breaching that level and instead entered a consolidation phase after a slight rebound. Market participants now await the release of today’s Eurozone Consumer Price Index, which is expected to provide further insights.
Meanwhile, the euro-yen pair exhibited trading activity within the range of 157 yen. After briefly reaching the mid-157 yen level due to euro selling and dollar buying observed in the previous day’s market, the euro-yen pair found support from the USD/JPY’s attempt to surpass 145 yen during the morning session, resulting in a temporary rebound to 157.58 yen. Nevertheless, the subsequent gains were offset, leading to a consolidation phase characterized by a period of stability and limited price movement.
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