Concerns Over Further Yen Weakness Following BOJ's Announcement of Fixed-Rate Operations

Concerns Over Further Yen Weakness Following BOJ's Announcement of Fixed-Rate Operations

28.03.2022

In the U.S. currency markets last weekend, the U.S. dollar strengthened against the euro, with the EUR/USD pair falling by about 80 pips from a high of 1.103 to 1.095. The pair has broken below the 1.096 level, which had been viewed as a key support level, and with U.S. Treasury yields also trending higher, we should be on guard for a potential decline toward the next support level around 1.091.

Among European currencies, the pound rose sharply, with GBP/JPY climbing from its recent low of 159.85 to 162.00. During today’s Asian trading session, the Bank of Japan announced “fixed-rate operations” involving unlimited purchases of 10-year bonds with a yield cap of 0.25%, which appeared to fuel the pound’s rise. The pound is also gaining against the euro.

Today’s schedule includes remarks by Bank of England Governor Bailey at 8:00 p.m. CET, followed by U.S. wholesale inventories (flash estimate) at 9:30 p.m. EST, the Dallas Fed Manufacturing Activity Index at 11:30 p.m. EST, a U.S. 2-year Treasury auction at 12:30 a.m. EST, and a U.S. 5-year Treasury auction at 2:00 a.m. EST.We will be closely monitoring the movements of various currency pairs to see if today’s price action sets the tone for the rest of the week.

Past Market Reports

1. 22.04.2026New

   Will interest grow in the upside potential of the Swiss franc, which has risen against the yen?

2. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

3. 20.04.2026New

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

4. 17.04.2026New

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

5. 16.04.2026New

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

6. 15.04.2026

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

7. 14.04.2026

   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

8. 13.04.2026

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

9. 10.04.2026

   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?

10. 09.04.2026

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