- The Japanese Yen has continued to weaken against a strong US Dollar, sending the price of the benchmark USD/JPY currency pair to a sustained bullish breakout above the big round number at ¥150, to a new 1-year high price. The Japanese Finance Minister Suzuki warned Yen sellers that he is “watching market moves with a sense of urgency”. Despite this, the currency pair will be of interest to trend traders on the long side.
- The Bank of Canada decided yesterday to maintain its overnight rate at 5%, weakening the Loonie slightly.
- Stock markets are generally lower, after the NASDAQ 100 Index fell by more than 2% on its worst trading day of 2023. Asian indices are also firmly lower, with the Nikkei 225 and HIS close to 1-year lows.
- inflation has risen more strongly than expected, from 5.2% to 5.6% instead of 5.3%. This has increased sentiment in favour of expecting further rates hikes, which has pushed up the value of the Australian Dollar today.
- Bitcoin remains strong near $35k after making a new 5-month high a few days ago. This will be attractive on the long side to trend traders. This rise has been attributed to BlackRock listing its bitcoin ETF on the Depository Trust & Clearing Corporation database, sparking intense speculation that the first Bitcoin ETF could soon be approved for retail investors.
- In the Forex market since the Tokyo open, the strongest major currency has been the US Dollar, while the Australian Dollar has been the weakest, putting the AUD/USD currency pair in focus.
- The prices of some soft commodities have continued to rise significantly, with both Cocoa and Sugar futures either reaching or close to new long-term highs.
- Following media reports suggesting that Israel’s planned ground invasion of Gaza was being pushed back by American considerations, Israeli PM Netanyahu yesterday made a televised address in which he pledged the operation will take place, while reiterating his government’s goal of destroying Hamas completely.
Forex Today: USD/JPY Breaks ¥150
Adam Lemon
Despite the threat of intervention by the Bank of Japan, the USD/JPY currency pair has finally made a sustained bullish breakout above ¥150, reaching a new 1-year high price.