The Japanese yen goes below 150.
After nearly two weeks of little movement, the Japanese yen is exhibiting some volatility. The yen rose as much as 1% on Thursday before losing much of its gains. On Friday, the USDJPY pair reversed direction and is now trading at 150.59 in Europe, up 0.40%.
Tanaka of the Bank of Japan calls for monetary policy reforms.
The yen’s strong surge follows comments made by Bank of Japan board member Hajime Takata on Thursday. Takata stated that the Bank of Japan must alter its ultra-loose monetary policy, which includes ending negative interest rates and removing bond yield control. Takata added: stated the BoJ was “seeing prospects of achieving our 2% inf·lation target”.
Takata’s hawkish remarks are the latest indication that the central bank is close to unwinding its ultra-loose policy, which may have a significant impact on currency markets. The Bank of Japan has not provided any dates for policy changes, although markets expect the Bank to raise interest rates out of negative territory at its April meeting.
Let us not forget that when the yen trades around 150, there are rumblings in Tokyo that the government may have to interfere to support the currency. Masato Kanda, Japan’s top currency ambassador, stated on Thursday that policymakers were concerned by recent currency movements and were “ready to respond appropriately.” “If we see excessively volatile movements.”
The US PCE price index fell to 2.4%.
In the United States, the Federal Reserve’s favorite inflation barometer, the Personal Consumption Expenditures Price Index, fell to 2.4% in January, matching market expectations. This is down from 2.6% in December and the lowest rate since February 2021, indicating that inflation continues to decline. The PCE price index gained 0.3% monthly, up from a revised 0.1% in December and in line with market expectations. The increase was due to rising service rates.
Japanese yen Technical
USDJPY is placing pressure on the resistance at 150.74. Above, there is resistance at 151.47.
Support is available at 149.97 and 149.24.
