- USD/JPY hits seven-week lows, while yen’s rally drags on.
- Tokyo Inflation figures, due to be released at the end of the week, could put a damper on the Yen’s recovery.
- The USD/JPY pair is preparing for its third consecutive day of decline, as markets sell the Dollar and offer the Yen.
The USD/JPY pair continues to decline during trading on Monday, with the Japanese Yen (JPY) advancing more than 1% against the US Dollar (USD). The pair has retreated from the 150.00 area and is currently targeting the area below 148.00.
The widespread decline in the US Dollar’s speculative position is exacerbating the Yen’s recovery from multi-year lows, and the trick for Yen bulls will be to keep the Yen on course through Japanese inflation figures due out later this year. this week, scheduled for the early hours of Friday.
Japan’s Consumer Price Index (CPI) on Friday is expected to show a slight improvement in the core CPI (less volatile CPI for fresh food prices), with the annualized figure forecast to rise from 2.8% to 3.0%.
The Bank of Japan (BOJ) has remained incredibly dovish lately, helping the Yen hit some of its lowest bids in fifteen years against some of the other major currencies. An encouraging inflation figure would be salvation for the BOJ, which hopes some of its extraordinary policy measures will help prevent the Japanese economy from slipping back into long-term deflation.
Current rate of the Japanese Yen
Below is the percentage evolution of the Japanese Yen (JPY) against the currencies listed today. The Japanese Yen appreciated against the Canadian dollar.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.33% | -0.34% | 0.11% | -0.55% | -1.06% | -0.41% | -0.19% | |
| EUR | 0.33% | -0.03% | 0.44% | -0.22% | -0.73% | -0.08% | 0.13% | |
| GBP | 0.34% | 0.03% | 0.47% | -0.19% | -0.70% | -0.06% | 0.16% | |
| CAD | -0.12% | -0.44% | -0.46% | -0.66% | -1.18% | -0.53% | -0.31% | |
| AUD | 0.54% | 0.22% | 0.21% | 0.66% | -0.51% | 0.13% | 0.35% | |
| JPY | 1.06% | 0.72% | 0.48% | 1.18% | 0.51% | 0.65% | 0.87% | |
| NZD | 0.42% | 0.09% | 0.07% | 0.53% | -0.13% | -0.65% | 0.24% | |
| CHF | 0.20% | -0.13% | -0.14% | 0.31% | -0.35% | -0.87% | -0.21% |
The map shows the percentage changes of the major currencies against each other. The base currency is chosen in the left column, while the quote currency is chosen in the top row. For example, if you choose the Euro in the left column and scroll down the horizontal line to the Japanese Yen, the percentage change that appears in the box will represent EUR(base)/JPY(quote).
USD/JPY Technical Outlook
The USD/JPY pair is set for its third consecutive day of losses, accelerating declines as the pair falls below the 50-day simple moving average (SMA) for the first time since late July, when the pair was trading near of 141.00.
With a lower close on Monday, the USD/JPY will have closed lower for four of the last five sessions, and the pair has retreated more than 2.5% from the high reached at the beginning of last week at 151.91.
Despite the short-term decline, USD/JPY remains firmly well-traded, and continues to trade well above the 200-day SMA, which is miles away from the current price action, pushing up at 142.00 .
USD/JPY Daily Chart
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.
