U.S. Dollar / Japanese Yen

USDJPY FXCM
USDJPY
U.S. Dollar / Japanese Yen FXCM
 
No trades
Prev
Open
Volume
 — 
Day's Range
Prev
Open
Volume
 — 
Day's Range

Important events

Aug 022022

Yearning for the yen

The US dollar continues to tumble against the yen as yields fall and investors anxiously await consequential economic data.

  • The US dollar neared a one-month low against the Japanese yen on Tuesday morning. The dollar is in the midst of a five-day losing streak against the yen that has seen the currency sink around 4.5% – a stark contrast to its performance earlier this year, which saw the yen fall to a 24-year low against the dollar in mid-July.
  • The dollar has been boosted by the Fed’s aggressive rate hike pace this year, and its recent slump comes after the central bank indicated it might slow its rate hike roll at September's meeting if economic data keeps improving. Friday’s US monthly jobs report is expected to confirm the labor market is moderating, which may push the Fed towards a less hawkish hike.
  • There are a couple of other things at play too. The yen is v sensitive to the gap between US and Japanese government bonds, which is seeing its spread widen this week as the benchmark Treasury yield falls to its lowest level since April. On top of that, worries over a potentially controversial visit to Taiwan by US House Speaker Nancy Pelosi are driving safe-haven flows to the yen.
Aidan Bartos / Unsplash

Subscribe to Snaps

See the market snapshots that matter and nothing else – sent to your inbox daily. Designed to be read in 20 seconds or less.