JPY

If you think this week's calm in USD/JPY will last, think again. With the U.S. labour market and inflation in focus, history suggests volatility is just around the corner.

USD/JPY is trying to break a streak of seven consecutive red days, but surging Japanese yields brings the question as to whether macro forces may take over for the currency.

USD/JPY started the week with a strong breakout but that’s snapped back over the past three days, bringing with it questions around the trend in JPY.

Over the last three trading sessions, the Japanese yen has strengthened by more than 2% against the U.S. dollar, reaching the 140 yen per dollar area as the bearish bias intensifies in the short term.

Today, the Japanese yen appreciated by nearly 1% against the U.S. dollar, introducing a notable bearish bias in the current movements of the USD/JPY pair.

CHF/JPY continues to grind higher despite short-term bouts of risk aversion, highlighting how the franc’s fundamentals—low debt levels and defensive traits—set it apart from the more volatile, positioning-sensitive yen.

Despite the sharp declines seen in USD/JPY in recent sessions, a recovery of nearly 1% has been observed, favoring the U.S. dollar.

USD/JPY has put in a support bounce at a big spot on the chart following last Friday’s bearish engulf. GBP/JPY is of interest for JPY-weakness, and EUR/JPY for JPY-strength.

Yen weakness has continued to show, and USD/JPY has jumped up to a key Fibonacci level on the way to fresh three-week highs.

One day after the Federal Reserve’s decision, USD/JPY remains neutral, with a daily variation of less than 0.5% in the last few trading hours.

USD/JPY has been in a grinding bear trend for much of the year, but that doesn’t mean that it’s been a simple matter for traders.