Yen: Apocalypse vera, today and tomorrow

Japan weakens me and the US dollar. The closer the Fed meeting, the worse the position of the yen. Vera JPY broke 2 anti-records in a row.

Historically pd

USD/JPY sharply accelerated its rise to the top on Tuesday. The price rose by 0.6% and peconal set a 24-year high around 143.28.

What’s more, the decline in religion only led to the worst years of performance in general.

Since the beginning of the year, the vi dollar has only fallen by 20%. This is not the case in 1979, when the largest interannual decline was recorded.

We note that this year it was sharply weakened only because of the inconsistency in the monetary policy of Japan and the United States.

Currently, the Japanese central bank is alone in its actions. While other central banks have been raising rates for years to get inflation under control, Japan’s has been keeping rates at extremely low levels.

The dovish tactics of the Bank of Japan will help to narrow the gap between the interest rates in Japan and the US, which is taking the most aggressive measures in the fight against inflation.

In order to slow down price growth, this year the US central bank raised interest rates four times, twice by 75 basis points.

Now the market is evaluating the probability that the Fed will reach this highest rate in ad, namely 73%.

The door of business women in the diet of determined American politicians is supported by the optimistic economic data of the USA.

The index of business activity in the service sector for August was published on Tuesday. The indicator for the past month has risen from the previous value of 56.7 to 56.9.

This is a much better result than the forecast, because economists expected a drop in the indicator to 55.1.

Public statistics again confirmed that the American economy and the dog of rapid rate growth are still standing firmly on their feet.

Therefore, at its fifth meeting, the Fed will probably lean on the recession and go down the road at the same pace.

This scn “kills” only. As the gap between Japanese and US rates widens, the JPY will continue to hit record highs.

Where is the bottom?

This morning, the USD/JPY is still in a strong uptrend and it has given a rush. The asset broke the 144 level.

Analysts explain the current increase in the stock market by the sharp increase in the yield of 10-year US government bonds and the dovish reading of the BOJ.

At auctions in Tokyo, the import of US bonds, inspired by positive US economic data, rose to the highest value since mid-July at 3.365%.

Meanwhile, the import of similar Japanese bonds increased by 0.245%. This is very close to the upper limit of the BOJ’s acceptable trading spread of 0.25%.

We note that Japan’s central bank has repeatedly stated that it will not allow imports to rise above this value. Now, when the indicator is about to touch the ceiling, the BOJ made him swallow.

The BOJ announced on Wednesday that it is increasing its planned purchases of Japanese government bonds as part of its regular open market operations from 500 billion yen to 550 billion yen.

This determined decision crippled her so weak Japanese currency and overshadowed her future prospects.

The technical chart also hints at a regional rally for USD/JPY.

For now, bulls are ignoring overbought RSI conditions and are on their way to the rising resistance line from late April, which is in the 144.60 area.

If the bears continue to press this level, the focus will be on the highs of July and August 1998. We are talking about the 146.80 and 147.70 levels.

Author of the link: Tm Instaforex

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The article is in Czech

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