The session on APAC markets brought an activation of market bulls on the USDJPY pair, who increased their bets on further weakness in the Japanese yen. Thus, the pair found itself in the zone of historical peaks, which capped gains on the instrument over the past 2 years.
The BOJ's Tamura commented today that the central bank is likely to maintain an accommodative monetary policy for the time being, which, combined with the broad-market strength of the dollar, weakened the USDJPY pair. In the last 15 minutes, however, the move was negated rather abruptly by reports that the BoJ, MoF, FSA are scheduled to meet to discuss the situation in international financial markets. What's more, the meeting itself will be followed by a conference call with Kandy, a key currency diplomat, which could theoretically indicate that the current scale of yen weakness is not desirable, opening the way for currency interventions to be made.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Reaction to the meeting announcement. M5 interval. Source: xStation
USDJPY pair on the D1 interval and a test of historical peaks. Source: xStation
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
