Will the Bank of Japan’s Consecutive Fixed-Rate Operations Affect the USD/JPY Exchange Rate?
21.04.2022
- Philadelphia Fed Business Conditions Index
- U.S. Leading Economic Index
In yesterday’s U.S. currency markets, the USD/JPY pair—which had been falling following the announcement of the Bank of Japan’s fifth consecutive day of fixed-rate operations starting today—found support at the 75-period moving average on the hourly chart, stabilizing its downside. The USD/JPY has rebounded by approximately 120 pips during today’s Asian trading session, and we need to carefully assess whether it will re-enter an uptrend from here.
European currencies saw the upside momentum in the euro/dollar pair—which had been rebounding on reports that Mariupol, located in southeastern Ukraine, might fall as early as today—lose steam.The EUR/USD pair rose from 1.075 to 1.086, but as price action is currently centered around the 200-period simple moving average (SMA) on the hourly chart and the market is searching for direction, we will wait to confirm a breakout in either direction before determining the trend.
Today, during European trading hours, the Turkish Consumer Confidence Index will be released at 16:00, followed by the Eurozone Consumer Price Index at 18:00. During U.S. trading hours, U.S. Initial Jobless Claims and the Philadelphia Fed Business Outlook Index will be released at 21:30, and a statement by a UKremarks by MPC member Mann, at 23:00 the U.S. Leading Economic Index and U.S. weekly natural gas inventories, at 25:30 remarks by BOE Governor Bailey, and at 26:00 the Europeanremarks by ECB President Lagarde, and remarks by Fed Chair Powell. We will be closely monitoring the situation to assess the extent of the impact from the Bank of Japan’s fixed-rate operations.
Author: Keisuke Sakurai
