Amid a lack of events on the economic calendar, the Japanese yen has been a decent mover to start the week thus far. After the gains yesterday, we are seeing a further advance today with USD/JPY now down 0.6% to near 156.00 on the day. AUD/JPY in particular is suffering the most, down another 1% as it erases its gains from June and then some now:
There’s not much of a major catalyst driving the yen gains this month. But the run comes after Japan intervened two weeks ago, resulting in a technical breakdown in USD/JPY of this particular trendline at the time as well.
The bond market may be what some traders can point to earlier this month but it hasn’t quite been the case in the past few days. 10-year yields in the US may be down today but are seen at 4.24%, faring much better from the low near 4.14% last week.
As the retracement in the yen continues to run for now, these are some levels to watch for USD/JPY.
This article was written by Justin Low at www.forexlive.com.
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