Even if the USD/JPY Enters the 138-Yen Range, Concerns About Intervention May Remain Limited
14.07.2022
- Switzerland—Producer Import Prices
- U.S. Producer Price Index
In the previous day’s U.S. currency markets, the dollar rose on expectations of an interest rate hike following the release of U.S. CPI data, which came in at a high of 9.1% year-over-year. The euro fell slightly below parity against the dollar, dropping to 0.9998.During today’s Asian trading session, the pair continues to test lower levels. The U.S. dollar is also strengthening against the pound, with the GBP/USD pair falling from 1.1966 to 1.1827. The USD/JPY pair has moved into the 138-yen range and continues to rise, though concerns about potential currency intervention by the Bank of Japan remain limited.
European currencies—both the pound and the euro—are trading weaker against the U.S. dollar but have risen against the yen. In particular, the euro/yen pair rose by about 160 pips, from 137.125 to 138.799.It has continued to hit new highs during today’s Asian trading session. We’ll be watching to see if it extends its gains toward the 75-period moving average (MA) on the 4-hour chart, around 139.314.
Today’s schedule includes Germany’s Wholesale Price Index at 15:00 Asia time, Switzerland’s Producer Import Prices at 15:30, Turkey’s Industrial Production at 16:00 Europe time, the U.S. Producer Price Index and Initial Jobless Claims at 21:30 U.S. time,Canadian Manufacturing Sales at 21:30, U.S. Natural Gas Inventories at 23:30, and remarks by Federal Reserve Governor Waller at 24:00. We should remain cautious about the direction of the USD/JPY pair, as its upward trend shows no signs of stopping.
Author: Keisuke Sakurai
