Will the Bank of Japan's consecutive fixed-rate operations affect the USD/JPY exchange rate?
21.04.2022
- Philadelphia Fed Business Outlook 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 at lower levels. 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 stall following reports that Mariupol, located in southeastern Ukraine, could fall as early as today. The euro/dollar 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’s schedule includes the Turkish Consumer Confidence Index at 16:00 CET, the Eurozone Consumer Price Index at 18:00 CET, U.S. Initial Jobless Claims and the Philadelphia Fed Business Outlook Index at 21:30 ET, and remarks by a member of the Bank of England’s Monetary Policy Committee at 22:00 ET,remarks by a member of the Bank of England’s Monetary Policy Committee, at 11:00 PM the U.S. Leading Economic Index and U.S. weekly natural gas inventories, at 1:30 AM remarks by Bank of England Governor Bailey, at 2:00 AM remarks by ECB President Lagarde, and remarks by Fed Chair Powell. We will be closely monitoring the extent of the impact from the Bank of Japan’s fixed-rate operations.
Author: Keisuke Sakurai
