Technical Analysis

USD/JPY is leading the dollar lower (sort of)

USD/JPY has had a run higher and back down again:

The move up towards 137.40 more or less coincided with the Bank of Japan jumping in to buy JGBs. Whcih is weird as its BOJ policy to try to control yields (YCC) and they jump in regularly to buy the bonds when yields rise or threaten to rise. And thus confirming easy policy remains in place. But … we know all this. Who is trading USD/JPY, goldfish with a memory span of 3 seconds?

Anyway. the Drop in USD/JPY is now coinciding with a small pop for FX against the USd pretty much across the majors board. UR, AUD, GBP, NZD, CAD, CHF … even gold, all have added on a small gain in the past half hour or so.

Apart from what has been posted there is no fresh news. I’m awaiting anything from China on further easing of COVID rules, but we’ll see.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button