Jpy Closes In Red Against Usd

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Jpy Closes In Red Against Usd

Japanese Yen (JPY) Closes 2nd Day In Red Against USD

The price action of JPY against the USD was mostly flat for the week. If we look at the daily price action, this marks the 2nd day that JPY has lost against the USD.

To say that the Japanese Yen is struggling against the greenback wouldn't be wrong. In fact, the JPY ended up reversing most of its gains against the USD after the release of US CPI.

Usd/Jpy Regains Lost Ground

On Friday, the BoJ president answered some questions about the market events and the central bank's monetary policy. However, the investors were not impressed at all which led to virtually no change in the USD/JPY.

Meanwhile, the DXY appears to be extending its recovery after the slump it faced a few days ago on CPI release. However, let's not forget that the greenback doesn't have many reasons left to outperform.

Still, the rate difference between the two currencies favors the USD, which means an upside for the USD/JPY. At the same time, we must also account for the fact that the disinflation trend in the USA has started once again, which means lower rates in the near future.

Overall, the USD/JPY can still go higher as there's ample room due to the weakness of the JPY. After all, even those who bought the USD/JPY near the 153.00 are still not in the profit-taking mood.

That's why when we say that the USD/JPY can revisit the 160.00 area, then it doesn't seem like a stretch. At the same time, the traders of the USD/JPY can't ignore the risks of intervention.

few weeks earlier, the BoJ intervention led to a flash crash of the USD/JPY, which took out a lot of stop-losses. So any further upside in the USD/JPY should be viewed with caution as the risk of intervention is all too real.

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