Growing trend of USD/JPY continue

Noam Stiekema

The growing trend of USD/JPY continue at the start of the new week trading, caused by the continuing mass sales triggered after the announcement of additional stimulus by the Bank of Japan. USD mark strong performance against EUR, which recorded a new 2-year low. The sharp market movements in recent days caused mainly by the […]

JPY USD trend

JPY USD trendThe growing trend of USD/JPY continue at the start of the new week trading, caused by the continuing mass sales triggered after the announcement of additional stimulus by the Bank of Japan. USD mark strong performance against EUR, which recorded a new 2-year low. The sharp market movements in recent days caused mainly by the actions of major central banks, which show more clearly that their policies begin to diverge. While the US Federal Reserve gradually transferred to the restrictive policy and the reduction of economic incentives, central bankers in Europe and Japan increasingly dissolved wallet. Monday auctions for JPY continued in full force and currency reached a new 7-year low against USD. On Friday, USD rose by as much as 3% against the JPY after the Bank of Japan issued a surprising decision to increase the incentives to its 80 trillion JPY annually. Meanwhile, the central bankers decided to triple the rate of purchase of high-risk assets.

The pressure on JPY was boosted after it became clear that the long-awaited law changes in Japan’s pension fund was submitted for consideration by the government. If the project is approved, 25% of the fund’s assets will be directed to local and foreign shares. Such redistribution of billions of USD are expected to boost the stock market.

The big question that analysts are asking now is when it will stop upward movement USD against JPY. A large proportion of traders, the answer to this question is in the hands of the Federal Reserve.

The divergence between the monetary policies of Japan and the US expanded more and likely actions of one of the two banks may cause new serious moves in the pair.

Although the focus of the market is entirely directed towards Japan, the EUR continues to lose ground against USD after the Asian session reached its lowest level since August 2012. Estimates are that the EUR will remain around current levels in anticipation of the ECB meeting on Thursday. Attention to the game is more than just once in meetings of central bankers of Japan and the United States have witnessed a significant market movements.

One EUR is exchanged for 1.2550 USD, close to the levels at which the session began. The pair GBP/USD is trading at around 1.6000, having earlier reached a low at 1.5922. At the same time USD is trading around 113.00 JPY, the highest level in more than 7 years.

Read this next

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

Digital Assets

BlockDAG Presale Raises $9.9M as Batch 5 Nears Sell-Out Amid Bonk’s Fluctuating Trading Volume & Spell’s Bullish Price

Explore BONK’s trading volume, SPELL’s market shifts, and why BlockDAG’s 10,000 ROI makes it an ideal crypto for savvy investors in 2024.

Digital Assets

Bybit expands into Europe amid regulatory scrutiny

Dubai-based cryptocurrency exchange Bybit is expanding its operations in Europe after encountering regulatory challenges in Hong Kong.

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

Retail FX

Prop firm The Funded Trader shuts down, claims relaunch in April

Prop trading firm The Funded Trader has ceased all operations, with claims for a relaunch in the near future.

<