Stay in step with market opportunities and get insights, actionable trade ideas and dedicated support.
The trading week has come to an end and a lack of direction around the yen remains evident in the short term. This can be seen in the performance of USD/JPY over the last three trading sessions, where the pair has recorded moves of barely 0.3%, highlighting a market that continues to develop within a broadly neutral environment.
Indecision continues to be a defining feature of the yen's recent price action. This can be seen in USD/JPY, which has posted average fluctuations of just 0.4% over the last three trading sessions, failing to establish a clear direction and reinforcing an increasingly evident neutral bias.
Recent trading sessions have produced mixed results for the Japanese yen. By the end of last week, USD/JPY had fallen by more than 1.00%, reflecting a modest recovery in the yen. However, the start of this week has seen the pair move slightly back in favor of the U.S. dollar, posting gains of around 0.04%.
The Japanese yen continues to face challenging conditions in the short term. By the end of the week, USD/JPY had gained nearly 2.00% over the previous five trading sessions, highlighting ongoing weakness in the yen and showing that the U.S. dollar continues to gain ground.
USD/JPY has plunged nearly 7% from the highs, with momentum stretched and major support looming ahead of CPI and next week’s rate decisions.
Record yen short positions and a hawkish Fed have propelled USD/JPY to fresh highs, but with the pair testing key intervention levels, traders may soon discover whether Japan's Ministry of Finance is willing to act.
The yen has continued to gain relevance during recent trading sessions and, over the last four trading days, USD/JPY has declined by nearly 3.6%, highlighting the strength currently being displayed by the Japanese currency against the U.S. dollar.
A significant shift has begun to emerge around the strength of the Japanese yen in the short term. Over the last two trading sessions, USD/JPY has declined by nearly 1.00%, reflecting a notable recovery in the Japanese currency.
It has not been an easy week for the Japanese yen. Over the last four trading sessions, USD/JPY has posted a move of only around 0.3%, reflecting a market that continues to lack clear direction and remains trapped in a phase of neutrality.
Japan CPI strengthened the case for a September BOJ hike, yet the yen remains weak as traders weigh intervention, yields and higher oil prices.
Near the end of the trading week, one of the most relevant moves in the FX market has been the Japanese yen’s neutrality, even after the release of the US PCE inflation data. After the data was published, USD/JPY did not register a significant move, with price action staying close to 0.05%, reinforcing a phase of short-term indecision.
Learn about the 10 most traded currencies like the dollar, euro and yen and learn why forex traders prefer trading these major currencies
Learn about the 10 most traded currencies like the dollar, euro, and yen and why forex traders prefer trading these major currencies.
