Should we sit back and watch the Japanese yen—now the world’s strongest currency—continue to rise?

Should we sit back and watch the Japanese yen—now the world’s strongest currency—continue to rise?

16.10.2024

Yesterday, the three major U.S. stock indices all fell, leading to a market environment characterized by falling stock prices, lower interest rates, and declining crude oil prices. WTI crude oil barely held onto the key $70 level, falling to around $70.2. Natural gas, on the other hand, rose 0.89% from the previous day, trading in the $2.49 range.The five major precious metals saw mixed performance, with silver posting a significant gain, rising 1.3% from the previous day to reach $31.50.

In the foreign exchange market, the Japanese yen emerged as the strongest currency from late Asian trading hours through U.S. trading hours. The AUD/JPY pair fell from 100.773 to 99.841. The decline occurred as the pair encountered resistance at the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the price has broken below the 75-period MA support line with a bearish candle, and on the daily chart, the pair has been trading just below the 200-period SMA for over a week.

Today’s economic indicators include Japan’s machinery orders at 8:50, the UK’s Consumer Price Index, retail sales, and Producer Price Index at 15:00, Thailand’s policy rate and statement at 16:00, South Africa’s retail sales at 20:00,at 8:00 PM, the US MBA Mortgage Applications Index; at 9:15 PM, Canadian Housing Starts; at 9:30 PM, Canadian Manufacturing Sales and the US Import Price Index; and at 3:40 AM, remarks by ECB President Lagarde are scheduled. We intend to carefully monitor the upside potential of the Japanese yen, which has become the strongest currency.

Past Market Reports

1. 17.04.2026New

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

2. 16.04.2026New

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

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

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

5. 13.04.2026New

   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

6. 10.04.2026

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

7. 09.04.2026

   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?

8. 08.04.2026

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

9. 07.04.2026

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

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed