- The USD/JPY advances about 152.00 at the expense of the Japanese Yen.
- The president of the United States Trump announces that he is prepared to impose 25% tariffs on imports of steel and aluminum.
- Investors will be attentive to Powell’s testimony of the Fed on Tuesday and Wednesday.
The USD/JPY torque attracts strong offers about the minimum of two months of 151.00 and bounces around 152.00 at the beginning of the week. The asset is strengthened as Japanese (JPY) weakens in general after the publication of the weak data of the Japan current account.
And in Japanese price today
The lower table shows the rate of change of Japanese Yen (JPY) compared to the main currencies today. Yen Japanese was the strongest currency in front of the Japanese yen.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.04% | 0.05% | 0.36% | 0.36% | -0.12% | 0.07% | 0.08% | |
| EUR | -0.04% | 0.08% | 0.45% | 0.44% | -0.16% | 0.11% | 0.12% | |
| GBP | -0.05% | -0.08% | 0.21% | 0.33% | -0.24% | 0.03% | 0.04% | |
| JPY | -0.36% | -0.45% | -0.21% | -0.01% | -0.39% | -0.27% | -0.24% | |
| CAD | -0.36% | -0.44% | -0.33% | 0.01% | -0.46% | -0.33% | -0.32% | |
| Aud | 0.12% | 0.16% | 0.24% | 0.39% | 0.46% | 0.28% | 0.29% | |
| NZD | -0.07% | -0.11% | -0.03% | 0.27% | 0.33% | -0.28% | 0.00% | |
| CHF | -0.08% | -0.12% | -0.04% | 0.24% | 0.32% | -0.29% | -0.01% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the Japanese yen from the left column and move along the horizontal line to the US dollar, the percentage change shown in the picture will represent the JPY (base)/USD (quotation).
The Japan Ministry reported that the balance of the current account was 1,077.3 billion Yen, almost a third of the reading of November 3,352.5 billion Yen.
The Japanese Yen exceeded his peers last week due to the growing speculation that the Bank of Japan (BOJ) will increase the interest rates even more, a scenario that will reduce the differentials of interest rates with other central banks.
Meanwhile, the US dollar (USD) is slightly higher amid an atmosphere of risk aversion by renewed fears of a global commercial war. During the weekend, US president, Donald Trump, threatened to impose 25% tariffs on all imports of steel and aluminum and reciprocal tariffs on nations where he sees unfair commercial practices.
The US dollar index (DXY), which follows the value of the dollar against six main currencies, is 0.1% higher, around 108.20, but has fallen from the maximum intradic of 108.50.
Investors fear that Trump’s international agenda impacts the US economy and causes inflation. This scenario would force those responsible for the monetary policy of the Federal Reserve (FED) to maintain a cautious position on more time interest rates.
To obtain more guidance on monetary policy perspectives, investors will focus on the testimony of the president of the FED, Jerome Powell, before Congress on Tuesday and Wednesday.
And in Japanese faqs
The Japanese Yen (JPY) is one of the most negotiated currencies in the world. Its value is determined in general by the march of the Japanese economy, but more specifically by the policy of the Bank of Japan, the differential between the yields of the Japanese and American bonds or the feeling of risk among the operators, among other factors.
One of the mandates of the Bank of Japan is the currency control, so its movements are key to the YEN. The BOJ has intervened directly in the currency markets sometimes, generally to lower the value of YEN, although it abstains often due to the political concerns of its main commercial partners. The current ultralaxy monetary policy of the BOJ, based on mass stimuli to the economy, has caused the depreciation of the Yen in front of its main monetary peers. This process has been more recently exacerbated due to a growing divergence of policies between the Bank of Japan and other main central banks, which have chosen to abruptly increase interest rates to fight against inflation levels of decades.
The position of the Bank of Japan to maintain an ultralaxa monetary policy has caused an increase in political divergence with other central banks, particularly with the US Federal Reserve. This favors the expansion of the differential between the American and Japanese bonds to 10 years, which favors the dollar against Yen.
The Japanese Yen is usually considered a safe shelter investment. This means that in times of tension in markets, investors are more likely to put their money in the Japanese currency due to their supposed reliability and stability. In turbulent times, the Yen is likely to be revalued in front of other currencies in which it is considered more risky to invest.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
