JPY Trading Outlook
The Japanese Yen (JPY) Held above Y80 but was very contained as the crosses came under pressure with EUR/JPY and GBP/JPY selling leading the way down. The BOJ and Japanese Government officials are trying to slow the downside with warning of intervention and more easing but the market is not really affected by such comments. The Nonfarm Payrolls on Friday is the major risk event for the month for the USD/JPY.
The Japanese Yen (JPY) the USD/JPY rallied back above the key psychological level of Y80 in the US session with the positive ISM data helping reverse the heavy selling. Crosses were mixed with AUD/JPY dipping then reversing in the US session and the GBP/JPY able to break back above Y130.
The Japanese Yen (JPY) the USD/JPY broke Y80 with little fanfare falling to Y79.80 in gentle but solid selling. The market has not been able to regain the Y80 level so far and this is a negative sign. Crosses are more resilient bouncing off lows in Asia but with stocks pulling back off highs the temptation to buy with USD/JPY under pressure may be dampened.
The Japanese Yen (JPY) the USD/JPY was under pressure towards Y80 as the weak US data affected the major negatively. Expectations are for further government verbal intervention close to Y80 and underneath to grow louder. The outlook is for more ranging but crosses are expected to do well.
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