The Japanese yen saves part of the losses inside the day amid the expectations of Boj Falcons
- The Japanese yen weakened after the comments of Japanese Finance Minister Katsonobo Kato on Friday.
- Japan’s strong national consumer price index prints, betting high rates, and must limit JPY losses.
- The basic landmarks of the US dollar may also contribute to a cover on the US dollar pair/JPY.
Japanese yen slides approximately 150 points inside the river against its American counterpart in response to the comments of the Japanese Finance Minister, Katsunobu Kato, saying that the highest -term rates can press the financial situation of Japan. Moreover, the governor of the Bank of Japan (Boj) Kazuo Ueda feed the speculation about a possible intervention to reduce the rise in Japanese government bonds (JGB) and undermine JPY.
Meanwhile, the Public Consumer Prices Index in Japan (CPI), which was released earlier on Friday, confirmed the expectations that BOJ will raise interest rates more. This is still supportive of the high JGB returns. Smarting the difference in the average between Japan and other countries helps reduce low return JPY losses. Moreover, the weakest tone surrounding US dollar (USD) reaches the US dollar pair/JPY.
Japanese bulls bulls have the upper hand amid increasing stakes to raise an additional BOJ rate
- On Friday, Japanese Finance Minister Katsunobo Kato warned that the highest Japanese government bonds revenues will increase the costs of debt service, which in turn may affect Japanese finance. This overwhelms the strongest version of the National Consumer Prices Index in Japan (CPI) and demands some sale during the day around the Japanese yen.
- Boj Kazuo Ueda noted that the long -term high interest rates will lead to an increase in corporate financing costs, but it also needs to be taken into account how the economy improves in their profits. If the markets make abnormal movements, we are ready to respond to mixing, such as market operations to soften the movements of the market, adding UDA more.
- The latest data issued by the Statistics Office in Japan showed that the National CPI rose to the highest level in two years of 4.0 % year -year in January from 3.6 % in the previous month. Meanwhile, the basic consumer price index, which excludes fresh, flying food, grew by 3.2 % from the previous year, compared to 3.0 % registered in December and touched the highest level in 19 months.
- Moreover, the basic consumer price index reading that excludes the costs of food and fresh fuel increased by 2.5 % in January of the previous year, which represents the fastest pace since March 2024. The data confirm the high hypertension in Japan, which necessitated noisy notes from many policy makers BOJ, which, in turn, should limit any meaningful decrease step for JPY.
- Moreover, the expectations that can stimulate the continuous gains of wages to spend consumers that BOJ can raise interest rates more aggressively than he initially believed. This keeps the JGB return for 10 years high near its highest level since November 2009 and should continue to work as the back wind of the low JPY in the near term.
- A survey of the private sector showed that the activity of the factory in Japan extended a decrease in the eighth month in a row in February, but at a slower pace. The manufacturing manufacturing managers index for manufacturing at Au Jibun Bank Japan (PMI) has recovered to 48.9 from the lowest level in 10 months at 48.7 in January. On the other hand, the scale for the services sector improved to 53.1 from 53.0.
- The US dollar has touched its lowest level since December 10 on Thursday, as it was more sophisticated sales expectations than Wall Mart, which has sparked complaints about the US consumer’s health. This comes at the top of the concerns that the US tariff plans, Donald Trump and protectionist policies, will enhance inflation, which may lead to an increase in consumer spending.
- Meanwhile, federal reserve officials are still cautious about future interest rates amid sticky inflation and uncertainty about Trump’s moves. In fact, Saint -Luis Alberto Moussel President warned on Thursday that high inflation expectations along with a stubborn recession may create a dual challenge to the American economy.
- Earlier, Federal Reserve Governor Adriana Kogler said that inflation in the United States still has a way to go to reach 2 % goal and that his way towards this goal is still rugged. However, the head of the Atlanta Rafael Bustic team struck Duofish’s tone and sees a space for other price discounts this year, although many depend on the advanced economic conditions.
- Traders are now looking for a Flash USSIS version for a new look at economic health. On Friday, the US economic Dockty is also characterized by current home sales data and consumer morale index revised in Michigan. This, in addition to the sermons of FOMC members, will lead the demand for the US dollar and provide some motivation to the US dollar pair/JPY.
USD/JPY remains at risk while less than 150.90-151.00 support that has turned into resistance
From a technical perspective, the collapse was seen overnight through horizontal support 151.00-150.90 and the subsequent decrease to less than the psychological brand 150.00 as a new catalyst for dumpling traders. Moreover, the oscillators on the daily graph hold deeply in the negative lands and are still far from being in the sale area. This, in turn, indicates that a less resistant path for the dollar pair/JPY is on the downside and any move can be considered an opportunity to sell near the round shape 151.00.
However, some follow -up purchase can show a short gathering and raise the US dollar pair/JPY to 151.40 obstacles on its way to the mark of Figure 152.00. However, the recovery momentum is at the risk of getting rid of vanishing somewhat near the area of 152.65. The aforementioned septum represents the 200 -day simple moving moving (SMA), which, if it was decisively wiped, may turn the bias close to the range in favor of the upcoming merchants.
On the other hand, the 150.00 mark seems to be working as immediate support before the 149.30-149.25 region, or the lowest multi-month level was touched during the Asian session. This is closely followed by the 149.00 brand, whose husband can slide in US dollar/JPY further towards the hypothesis decline in December 2024, around the area of 148.65.
Japanese questions yen
The Japanese yen (JPY) is one of the most trading currencies in the world. Its value is widely determined by the performance of the Japanese economy, but more specifically through the policy of the Bank of Japan, and the differential between the revenues of Japanese and American bonds, or risk morale among merchants, among other factors.
One of the states of the Bank of Japan is the control of the currency, so its movements are the key to the yen. BOJ interfered directly in the currency markets sometimes, and generally to reduce the value of the yen, although it refrains from doing so often due to the political concerns of its main commercial partners. Boj Ultra-LOOSE’s monetary policy between 2013 and 2024 caused the yen to decrease against its main peers due to the difference in policy between the Bank of Japan and other major central banks. Recently, relaxation has gradually gave this super -support policy some support for the yen.
Over the past decade, the BoJ’s position of adhering to a high -minded monetary policy has has expanded a difference in politics with other central banks, especially with the American Federal Reserve. This is to support the expansion of the difference between American and Japanese bonds for a period of 10 years, which preferred the US dollar against the Japanese yen. BOJ’s decision in 2024 to gradually abandon the policy of the super taste, as well as discounts in the interest rate in other major central banks, narrows this difference.
The Japanese yen is often seen as a safe investment. This means that in times of stress on the market, investors are likely to put their money in the Japanese currency because of its reliability and supposed stability. Distinguished times are likely to enhance the value of the yen against other currencies that are seen as more dangerous for investment.
