Will the yen's one-sided decline come to an end?

Will the yen's one-sided decline come to an end?

21.10.2021

Yesterday, two of the three major U.S. stock indices rose, resulting in a market environment characterized by higher stock prices, lower interest rates, and higher oil prices. WTI crude oil rose to $83.30, hitting a seven-year high. Gold rebounded and is trading around $1,785. The yield on the 10-year U.S. Treasury note, which had briefly reached 1.66%, is currently at 1.65%.

In the foreign exchange market, the trend of yen selling has paused, and cross-yen pairs are declining. GBP/JPY fell from a session high of 158.20 to 157.40. AUD/JPY has also dropped from 86.2 to 85.5. Given that this month’s daily candles have been mostly bullish, the decline in cross-yen pairs is a logical development. Meanwhile, among European currencies, EUR/GBP has continued to slide this month.

Today’s schedule includes Japanese machine tool orders at 3:00 PM (Asia time), the Turkish Consumer Confidence Index at 4:00 PM (Europe time), the UK CBI Business Survey at 7:00 PM, the Turkish Central Bank’s (TCMB) policy rate decision and statement at 8:00 PM, U.S. initial jobless claims and the Philadelphia Fed Business Outlook Index at 9:30 PM (U.S. time),at 10:00 PM, remarks by Fed Governor Waller; at 11:00 PM, the US Leading Economic Index and Existing Home Sales; at 11:30 PM, US Weekly Natural Gas Inventories; and at 4:00 AM, remarks by RBA Governor Lowe. As we enter the latter half of the week, we will carefully monitor how the US dollar, which has been losing momentum, positions itself against other currencies.

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