Australian Dollar AUDUSD flat
EUR/USD hit a fresh 16-month high of $1.1229 in Asia before retreating to $1.1235;
GBP/USD was last trading at $1.3140, up 0.05% on the day. Sterling broke through $1.30 on Thursday for the first time since April 2022.
The yen rose 0.29% to $137.65 against the dollar, on track for its biggest weekly gain since January.
The yen hit a fresh two-month high of 137.245 against the dollar earlier, and quickly moved away from the 145 level briefly breached last month, a level that raised concerns about Japanese authorities intervening in currency markets.
The Bank of Japan is currently in a dilemma. The prospect of persistent inflation increases the likelihood of an earlier adjustment to the yield control policy. While all currencies in the market except the US dollar are up, Be careful with the yen during this time. The safe-haven yen currency pair.
Ark Community – Daily News Summary: USD/JPY
We would like to remind all Ark community members and investors to avoid trading the USD/JPY currency pair.
Here’s a summary of today’s key points:
- The Bank of Japan has been striving to stimulate inflation, but their efforts have been ineffective. They believe the current inflation issue is driven by global factors rather than requiring a change in their ultra-loose monetary policy.
- The U.S. dollar has shown overall weakness against the Japanese yen, reflecting in the USD/JPY exchange rate.
- Some analysts suggest that if the Bank of Japan adjusts its suppressive yield curve control policy, the potential for rising U.S. bond yields would be smaller compared to Japanese government bonds.
- The Bank of Japan will announce its next policy decision and release economic forecasts on July 28th, with market expectations leaning towards a possible adjustment.
- The USD/JPY exchange rate has seen a significant decline since July 5th, breaking below the Fibonacci retracement level and the upward trend channel.
- The U.S. dollar may experience oversold conditions, and the selling pressure in the short term could ease, as the bulls may defend the psychological support zone.
- Currently, the market outlook for USD/JPY is relatively balanced, with 53% of people being bearish. The Bank of Japan is likely to adopt a cautious and gradual approach to unwind its monetary easing policy.
Therefore, all Ark community members, as well as other investors, are advised not to rush into transactions involving USD/JPY to avoid possible actions by the Bank of Japan that could damage your positions.
