the Japanese Yen The pound rose for a second day in a row against the US dollar, supported by comments from a senior Japanese politician.
Bank of Japan (BOJ) conducts Urged by Toshimitsu Motegia senior official in Japan’s ruling party, to more clearly indicate his intention. Monetary policy normalization.
Normalization Monetary policy signals a move away from the ultra-easy monetary policies the Bank of Japan has pursued for more than a decade, which were primarily aimed at combating deflation and stimulating economic growth.
This comes at a time when Japan is facing economic challenges due to the excessive decline in the value of the yen, which affects the cost of imports.
The yen found some support on the back of recent bouts of intervention by Tokyo to support the currency.
The market is now focused on Bank of Japan’s next move.
Speculative short positions in the yen fell after an unexpected intervention by Japan earlier this month. The U.S. Commodity Futures Trading Commission announced A significant decline in short yen positions was reported.indicating caution among traders ahead of the Bank of Japan’s upcoming policy meeting.
The Bank of Japan is expected to Possible rate hike to be discussed at next policy meetingand a shift away from broad stimulus measures may be announced.
Recently Weak consumer spending This would further complicate their decision on whether to raise interest rates next week.
Opinions vary on what the Bank of Japan will decide and how it will affect the value of the yen.
Meanwhile, the US dollar rose as traders awaited inflation data later in the week.
The Australian and New Zealand dollars continued their struggle after Surprise interest rate cuts in China.
When China unexpectedly cuts interest rates, it could raise concerns about the health of the Chinese economy in general. China is a major trading partner for both countries, especially for exports such as minerals from Australia and agricultural products from New Zealand.
China’s interest rate cuts often signal economic challenges, which could lead to Low demand for these exports.
Forex Market Drivers
Let’s review the price action in Forex today.
Which currency pairs made the biggest gains today?
GBP/NZD He was the leader of the group, and got 0.22% or 46 points.
As explained by us Foreign exchange market drivers page, USD/CHF And GBP/AUD They were not far apart from each other, both posting gains of more than 0.20%.
look at me GBP/NZD Trend Follow EvaluationIt shows strength. rising evaluation.
The bullish price action can be clearly seen with the currency pair trading above its moving averages:
But the GBP/NZD Overbought/Oversold Rating He appears “Overpriced“So be careful if you’re looking to go long term.
Which currency pairs lost the most today?
New Zealand Dollar/Japanese Yen He was the biggest loser, as he fell. 1.32% or 123 points.
look at me NZD/JPY Trend Following RatingIt shows strength. neutral evaluation.
currency strength
What is the overall strength or weakness of the individual major currencies today?
Based on currency strength meter On MarketMilk™, JPY It was, without a doubt, the strongest currency, while New Zealand Dollar It was the weakest currency.
If we dig a little deeper and look at how the major currency pairs work Moved in the last 24 hoursWe can see how weak the USD/JPY pair is.
Let’s look at how Japanese Yen pairs moved over the past 24 hours
Short term currency trends
When it comes to Short term trend strength, JPY Shows the greatest upward force.
the New Zealand Dollar (NZD)) shows the greatest downward force.
But the Australian Dollar (AUD) Not far behind.
Heat map of currencies
If we take a look at Heat map of currenciesWe can see continued weakness. New Zealand Dollar.
currency fluctuations
What is the most volatile currency today?
Based on our website Currency Volatility MeterIt’s the JPY.
Check the JPY Fluctuations over the past 24 hours:
What is the most volatile currency pair today?
Since the Japanese Yen was the most volatile currency, which pair?
tie between australian dollar/japanese yen And New Zealand Dollar/Japanese YenThey both moved about 1.4.% or 145 pips (AUD) and 130 pips (NZD)
Bonus: Is the Japanese Yen Oversold?
According to the Williams %R indicator, 100% (All 7) major yen pairs show “Oversold“
Almost all Japanese Yen pairs (86%) are trading below their lows. Bollinger Band:
