Jpy Remains Vulnerable At Fresh Lows

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Jpy Remains Vulnerable At Fresh Lows

Japanese Yen (Jpy) Remains Vulnerable At Fresh Lows

The Japanese Yen (JPY) has extended its losing spree during Tuesday's session amid a rising demand for USD. The USD/JPY is trading near 161.75, the lowest point since all the way back in 1986.

On the one hand, an exchange rate of 161.75 shows that that the USD is at historic highs against its Japanese counterpart. On the other hand, it also shows that Japanese Yen (JPY) has declined to multi-decades low despite existing the ultra-lose monetary policy.

Jpy Supported By Boj Officials Comments

For now, comments and press releases from the BoJ officials will likely limit any downside in the JPY. However, just words alone wouldn't be enough to prevent the USD/JPY from reaching new highs.

According to Japan's Finance Minister, they are closely watching the exchange rate of JPY against other currencies with vigilance. He didn't mention any specific levels that are acceptable for the BoJ but maintained that the government cares a lot about the exchange rate.

look at the USD shows that it has turned positive and ended its 3-day losing streak on a resurgence of the US bond yields. Once again, the talks from the Fed officials have further delayed the rate cut as many even question whether we will really see any rate cut from the Fed or not.

For now, the USD/JPY is trading near 161.60 with a bullish bias and is seen trading near the upper range of the bullish channel. However, the RSI is also above the 70 level, which is a sign of an overbought level and could mean some correction in the near term.

But if the USD/JPY can manage to cross the 161.70 level, it will invite more bulls into the party and could send it towards the 162.00. Another scenario is that the JPY takes the upper hand against the USD and challenges the nearest support at 160.38.

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