Should we be wary of the ongoing yen depreciation trend, which shows no signs of slowing despite declines in PMI figures across various countries?

Should we be wary of the ongoing yen depreciation trend, which shows no signs of slowing despite declines in PMI figures across various countries?

26.06.2023

Last weekend, the U.S. dollar rose against the yen despite the fact that the U.S. PMI Purchasing Managers' Index, released on the 23rd, fell below the previous reading for both the manufacturing and services sectors.The USD/JPY pair rose from 142.675 to 143.862. The 142.xx level, which had been viewed as resistance, turned into support, and the pair gained momentum to move higher. During today’s Asian trading session, however, the USD/JPY pair is trading in the mid-143s without a clear direction. We will wait and see cautiously to see if trading activity picks up during U.S. trading hours.

Despite the preliminary UK PMI figures released last weekend on the 23rd showing declines in both manufacturing and services compared to the previous readings, the pound rose against the yen. Although the GBP/JPY pair fell immediately after the PMI release, it regained momentum during U.S. trading hours, rising from 181.278 to 182.926 and hitting a new high for the year.During today’s Asian session, GBP/JPY opened with a gap of about 40 pips to the downside but has since filled the gap and is attempting to move higher. It will be worth watching whether the pound continues to gain ground during the European session.

Today’s schedule includes Taiwan’s industrial production at 5:00 PM, Germany’s IFO Business Climate Index, remarks by UK MPC member Dingra at 5:15 PM, remarks by SNB Governor Jordan at 5:50 PM, and the UK’sCBI Retail Trade Survey at 7:00 PM, Mexico’s Economic Activity Index at 9:00 PM, remarks by SNB Board Member Meckl at 11:25 PM, the Dallas Fed Manufacturing Activity Index at 11:30 PM, the U.S. 6-month Treasury bill auction at 12:30 AM, the U.S. 2-year Treasury note auction at 2:00 AM, and remarks by ECB President Lagarde at 2:30 AM.We must remain highly vigilant regarding the ongoing yen depreciation trend, which continues undeterred by declines in various countries’ PMIs.

Past Market Reports

1. 21.04.2026New

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

2. 20.04.2026New

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

3. 17.04.2026New

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

4. 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

5. 15.04.2026New

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

6. 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

7. 13.04.2026

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

8. 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?

9. 09.04.2026

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

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran