USDJPY at highest level since 1986 📈

11:35 AM 26 June 2024

🏛️Markets are pricing possible BoJ intervention amid USDJPY rally

The USDJPY pair today broke above the 160 barrier, a zone not seen since 1986. The continuation of the pair's uptrend has accelerated recently on the back of, among other things, better PMI data from the US economy, which strengthened the US dollar in the broad FX market. The Japanese yen weakened against the US dollar, two days ahead of the Federal Reserve's key consumer price inflation indicator, PCE. Although we didn't learn any data from Japan or the US today that could justify the high volatility, the market still seems to be exerting speculative pressure on the yen as Japan's economy shows signs of improvement while the Bank of Japan maintains its dovish stance. 

Start investing today or test a free demo

Open real account TRY DEMO Download mobile app Download mobile app

The swaps market is pricing that the BoJ will raise interest rates by 10 basis points at its meeting scheduled for July 31. However, this outcome is not certain, for past CPI data has not indicated that the slightly higher inflation readings were driven by an actual increase in consumer demand (one of the BoJ's key conditions for a rate hike). Source: Bloomberg Financial LP

  • Recent statements by leading politicians and representatives of Japan's financial sector indicate that Japanese elites are looking more and more carefully toward a weakening yen, which could increase domestic inflationary pressures.  
  • According to Wells Fargo analysts, the Bank of Japan will hold off on potential intervention until at least the 165 level on the USDJPY pair; they also indicated that the bank needs more volatility to achieve the intended effect of currency interventions, which have already cost bankers more than $60 billion this year. Japan's Finance Minister Suzuki and Foreign Exchange Delegate Masato Kanda have recently indicated that the BoJ is ready to intervene 24 hours a day
  • Traders, however, do not seem particularly concerned about the risk of another intervention and are selling off the yen. Bloomberg analysts suggest that 161 on USDJPY is also a likely level for intervention, although the pair is likely to be left with little volatility today, ahead of Friday's PCE data reading. A lower-than-expected PCE reading could increase volatility on the yen and make intervention more likely, further supported by a potential drop in yields and the dollar index.

The USDJPY pair is breaking out to new multi-year highs. Source: xStation5

Share:
Back

Join over 1 000 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
Description
SERVERID
userBranchSymbol Expiration date 25 October 2024
test_cookie Expiration date 24 October 2024
adobe_unique_id Expiration date 24 October 2025
__hssc Expiration date 24 October 2024
SESSID Expiration date 2 March 2024
__cf_bm Expiration date 24 October 2024
intercom-id-iojaybix Expiration date 21 July 2025
intercom-session-iojaybix Expiration date 31 October 2024
xtbCookiesSettings Expiration date 24 October 2025
TS5b68a4e1027
countryIsoCode
xtbLanguageSettings Expiration date 24 October 2025
userPreviousBranchSymbol Expiration date 24 October 2025
TS5b68a4e1027
intercom-device-id-iojaybix Expiration date 21 July 2025
__cf_bm Expiration date 24 October 2024
__cfruid
__cfruid
__cf_bm Expiration date 24 October 2024
__cf_bm Expiration date 24 October 2024
_cfuvid
adobe_unique_id Expiration date 24 October 2025
_cfuvid
TS5b68a4e1027
xtbCookiesSettings Expiration date 24 October 2025
SERVERID
TS5b68a4e1027
__hssc Expiration date 24 October 2024
test_cookie Expiration date 1 March 2024
__cf_bm Expiration date 24 October 2024
_cfuvid
_cfuvid
__cf_bm Expiration date 24 October 2024
__cf_bm Expiration date 24 October 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
Description
_gid Expiration date 9 September 2022
_gat_UA-98728395-1 Expiration date 8 September 2022
_gat_UA-121192761-1 Expiration date 8 September 2022
_gcl_au Expiration date 22 January 2025
_ga_CBPL72L2EC Expiration date 24 October 2026
_ga Expiration date 24 October 2026
__hstc Expiration date 22 April 2025
__hssrc
_vwo_uuid_v2 Expiration date 25 October 2025
_ga_TC79BEJ20L Expiration date 24 October 2026
_vwo_uuid Expiration date 16 October 2025
_vwo_ds Expiration date 15 November 2024
_vwo_sn Expiration date 16 October 2024
_vis_opt_s Expiration date 24 January 2025
_vis_opt_test_cookie
af_id Expiration date 23 February 2025
afUserId Expiration date 25 January 2026
af_id Expiration date 24 January 2026
AF_SYNC Expiration date 1 February 2024
_ga Expiration date 24 October 2026
_gid Expiration date 25 October 2024
_ga_CBPL72L2EC Expiration date 24 October 2026
__hstc Expiration date 22 April 2025
__hssrc
_ga_TC79BEJ20L Expiration date 24 October 2026
_gcl_au Expiration date 22 January 2025
AnalyticsSyncHistory Expiration date 31 March 2024

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
Description
MUID Expiration date 18 November 2025
_omappvp Expiration date 6 October 2035
_omappvs Expiration date 24 October 2024
_uetsid Expiration date 25 October 2024
_uetvid Expiration date 18 November 2025
_fbp Expiration date 22 January 2025
fr Expiration date 7 December 2022
_ttp Expiration date 22 January 2025
_tt_enable_cookie Expiration date 22 January 2025
_ttp Expiration date 22 January 2025
hubspotutk Expiration date 22 April 2025
IDE Expiration date 10 November 2025
YSC
VISITOR_INFO1_LIVE Expiration date 22 April 2025
hubspotutk Expiration date 22 April 2025
_omappvp Expiration date 11 February 2035
_omappvs Expiration date 1 March 2024
_uetsid Expiration date 25 October 2024
_uetvid Expiration date 18 November 2025
_ttp Expiration date 22 January 2025
MUID Expiration date 18 November 2025
_fbp Expiration date 22 January 2025
_tt_enable_cookie Expiration date 22 January 2025
_ttp Expiration date 22 January 2025
li_sugr Expiration date 30 May 2024
guest_id_marketing Expiration date 24 October 2026
guest_id_ads Expiration date 24 October 2026
guest_id Expiration date 24 October 2026
muc_ads Expiration date 24 October 2026
VISITOR_PRIVACY_METADATA Expiration date 22 April 2025
MSPTC Expiration date 18 November 2025
IDE Expiration date 18 November 2025
MSPTC Expiration date 18 November 2025

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name
Description
bcookie Expiration date 24 October 2025
lidc Expiration date 25 October 2024
UserMatchHistory Expiration date 31 March 2024
bscookie Expiration date 1 March 2025
li_gc Expiration date 22 April 2025
bcookie Expiration date 24 October 2025
li_gc Expiration date 22 April 2025
lidc Expiration date 25 October 2024
personalization_id Expiration date 24 October 2026

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence
Language