USD-JPY
Japan Retail Sales Can’t Stop USDJPY, Only an Intervention Can!
Skerdian Meta•Thursday, June 27, 2024•1 min read
USD/JPY has maintained its upward trend, with positive momentum intensifying recently. The pair has gained over 8 cents in June alone, pushing it above the 160 level and surpassing April’s highs, when Japanese authorities and the Bank of Japan (BOJ) intervened.
USD/CHF Chart Daily – The 50 SMA Keeps Providing Support
Following the intervention in late April, USD/JPY dropped by about 8 cents. However, the 50-day Simple Moving Average (SMA) in yellow provided robust support in late May and early June, aiding in the price’s recovery. Yesterday, USD/JPY closed at 161, surpassing the previous intervention highs of 160.20.
This likely triggered a significant number of stops, propelling the pair higher. With new ground being broken, market intervention is on high alert. As the pair continues to climb, traders are wary of potential further interventions by Japanese authorities, especially if the upward momentum persists and the yen weakens further. The ongoing watch for intervention adds an extra layer of volatility and uncertainty to the market, keeping participants on their toes.
Comments from Japan’s Top Currency Diplomat Masato Kanda:
- Expresses significant concern over the recent sharp depreciation of the yen
- Monitoring market movements closely with heightened vigilance
- Prepared to take action if necessary
- Does not specify target levels for potential intervention
- Views the prevailing yen weakness largely as speculative
- Acknowledges the rapid and one-sided nature of recent yen movements
Following the Japanese official’s comments, USD/JPY experienced a rapid decline, despite the suggestion that specific levels, such as 160.00, might not be defended. However, the pair swiftly reversed course and surged to new highs thereafter, indicating that these remarks no longer carry the same influence as before. This situation might prompt Japanese authorities to consider taking concrete actions to support their statements.
Japan Retail Sales for May
USD/JPY Live Chart
USD/JPY
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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