Will the yen's appreciation trend continue?

Will the yen's appreciation trend continue?

09.09.2021

Yesterday, the three major U.S. stock indices all fell, resulting in a market environment characterized by falling stock prices, lower interest rates, and higher oil prices. The decline came as stock prices faced resistance due to last weekend’s weak U.S. employment data, while inflation concerns remain unresolved and the Federal Reserve has signaled that it has no intention of altering its plan to reduce the pace of asset purchases.

In the foreign exchange market, following yesterday’s policy rate announcement—in which the policy rate was kept unchanged at 0.25%—the CAD/JPY pair has continued its downward trend since the start of the week and is currently trading around 86.6. From a technical perspective, the pair has already broken below the 200-period moving average (MA) on the 4-hour chart, and since the daily 200-period MA is located around 86.1, we will be closely monitoring whether there is any change in price movement at this level.

Today’s key economic indicators include Germany’s trade balance at 15:00 during Asian trading hours, remarks by RBA Deputy Governor Debelle at 17:35, the ECB’s policy rate decision and statement at 20:45 during European trading hours, U.S. initial jobless claims at 21:30, U.S. weekly natural gas inventories at 23:30, U.S. weekly crude oil inventories at 24:00,at 12:05 a.m. (US time): remarks by the President of the Federal Reserve Bank of San Francisco; at 1:00 a.m. (US time): remarks by Bank of Canada Governor Macklem; at 2:00 a.m. (US time): the US 30-year Treasury auction; and at 3:00 a.m. (US time): remarks by New York Fed President Williams. We will be watching closely to see if today’s economic releases will alter the gradual strengthening of the yen.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed