Forex Today: USD/JPY Hits New 20-Year High Above ¥129

Adam Lemon

The Japanese Yen continues its unprecedentedly rapid depreciation to a new 20-year low.

  • The US Dollar continued to move in line with its strong, long-term bullish trend yesterday, as the strongest major currency, while the Japanese Yen was certainly the weakest. This situation pushed the USD/JPY currency pair today to a new 20-year high price above ¥129 yesterday. However, recent hours have begun to see a strong move against the US Dollar. We may see further advances in the USD/JPY currency pair over the coming days, but the price might struggle to get beyond ¥130 as this is the figure the Bank of Japan have stated as the furthest they want to see the Yen to fall. The Bank of Japan and the Japanese Finance Minister are making delicate comments quietly encouraging the depreciation, but essentially expressing concerns at its very rapid pace.

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The yen is a popular asset during turbulent times.
  • The Forex market is seeing a counter-trend move today in the US Dollar, which has suddenly begun to sell off, while almost all other major currencies are advancing against it. It is not clear how long this will last before the long-term trend starts to reassert itself.
  • Many commodities, especially agricultural commodities, have been advancing to reach new long-term highs, but they almost all saw drops from highs yesterday. The market was affected by a new report from the International Monetary Fund which lowers forecasts for near-term global growth, especially in the UK. This saw Natural Gas drop by almost 10% while the price of Crude Oil also fell.
  • Stocks are mostly a little higher, while yields on US Treasuries have continued to climb.
  • Bitcoin may have found key medium-term support at $38,961.
  • There will be a release of Canadian CPI (inflation) data later today.
  • Daily new coronavirus cases globally fell last week for the fourth consecutive week.
  • It is estimated that 65% of the world’s population has received at least one dose of a coronavirus vaccination, while approximately 6.4% of the global population is known to have contracted the virus at some stage.
  • Total confirmed new coronavirus cases worldwide stand at over 505.4 million with an average case fatality rate of 1.23%.
  • The rate of new coronavirus infections appears to now be increasing only in Canada, Samoa, and Taiwan.
  • A hard lockdown continues in Shanghai, China, as seven coronavirus deaths were confirmed there yesterday. The lockdown is causing some supply chain disruption globally, although certain vital factories are beginning to reopen.
Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
Learn more from Adam in his free lessons at FX Academy

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