Even if the USD/JPY exchange rate enters the 138-yen range, concerns about intervention may remain limited
14.07.2022
- Switzerland – Producer Import Prices
- U.S. Producer Price Index
U.S. currencies rose the previous day on expectations of interest rate hikes following the release of U.S. CPI data, which showed a high year-over-year increase of 9.1%. The euro fell slightly below parity against the dollar, dropping to 0.9998.During today’s Asian trading session, the market continues to test lower levels. The U.S. dollar is also firm against the pound, with the GBP/USD pair falling from 1.1966 to 1.1827. The USD/JPY pair has risen above the 138 yen level and continues to climb, though concerns about potential currency intervention by the Bank of Japan remain limited.
European currencies, including the pound and the euro, have weakened against the U.S. dollar but strengthened against the yen. In particular, the euro/yen pair rose by approximately 160 pips from 137.125 to 138.799. It has continued to hit new highs during today’s Asian trading session. We will be watching to see if it extends its gains toward the 75-period moving average on the 4-hour chart, currently around 139.314.
Today, at 3:00 p.m. Asia time, Germany’s, at 15:30 Swiss producer import prices, at 16:00 European time Turkish industrial production, at 21:30 U.S. time U.S. producer price index, U.S. initial jobless claims, and Canadian manufacturing sales, at 23:30 U.S. natural gas inventories, and at 24:00 remarks by U.S. Federal Reserve Governor Waller.We should remain cautious about the direction of the USD/JPY pair, as its upward trend shows no signs of stopping.
Author: Keisuke Sakurai
