- The Japanese yen is declining after touching the highest level in one week against its American counterpart.
- The increasing stakes of an imminent BOJ rate this year should limit any deeper loss of JPY.
- The return on the return in Japan may also provide support for the low JPY.
Japanese yen (JPY) attracts some sellers during the Asian session on Tuesday, which, along with a modest side US dollar (USD) in the height, the USD/JPY pair helps regulate a modest recovery from the 151.25 or more than one week. Investors chanted a delay in implementing the mutual tariff for US President Donald Trump. This, in turn, is seen as a main factor that undermines the safe JPY. However, any decrease in the decrease in the meaning of JPY is still out of reach in the wake of the increasing stakes for further interest rates by the Bank of Japan (BOJ), which is reinforced by the launch of the strong GDP Q4 from Japan on Monday.
Meanwhile, Hakish Bog Expectations led to a significant increase in Japanese government bond returns, to its highest levels in all years. In addition, the recent decline in US Treasury’s bond returns is supported by expectations Federal Reserve (Fed) will reduce interest Rates Moreover, it narrowed the difference between the average American Japan. These merchants may prevent aggressive pipes around a low -return JPY. Consequently, it would be wise to wait for a strong follow -up purchase before confirming that the JPY pair has been put in place in a position of any additional recovery.
Japanese bulls bulls have the upper hand amid the forejes of hawks
- US President Donald Trump said on Thursday that he is planning to reveal mutual definitions, which aims at every country that receives duties on American imports, although he did not stop providing any details.
- Moreover, optimism about the talks between the United States and Russia aims to end the war in Ukraine, strengthening investor confidence and undermining the Japanese yen safe on Tuesday.
- Against the background of strong inflation numbers from Japan, the GDP GDP (GDP) has strengthened the issue of high interest rates from Japan this year.
- The markets are now pricing approximately 37 basis points of their value by December, which prompted the return of the Japanese government for a period of 10 years to its highest levels since April 2010.
- Meanwhile, a sudden decrease in US retail sales, as well as mixed signals about inflation, indicates that the federal reserve can reduce interest rates at the September or October policy meeting.
- The head of the Federal Reserve in Philadelphia Patrick Harker said on Monday that the labor market is in a large balance and that the current economy is arguing with a fixed policy because inflation was sticky in recent months.
- A member of the Board of Directors of the Federal Reserve Council, Michelle Bowman, indicated that the high asset prices may hinder the progress of inflation and need more certainty to decrease inflation before reducing rates.
- Christopher Waller, a member of the Board of Directors of the Federal Reserve, said that the progress of inflation in the past year was very slow and that price discounts will be appropriate in 2025 if inflation repeats the 2024 pattern.
- However, the futures for federal reserve funds are witnessing a reduction in the 40 -basis feeding rate in 2025, causing the recent decline in the returns of US Treasury bonds and contributing to narrowing the difference between the average American Japan.
- Traders are looking to issue the Empire State Manufacturing Index from the United States, which, along with the speeches made by influential FOMC members, would pay the US dollar and the USD/JPY pair.
The dollar may struggle to build a recovery during the day, exceeding the mark of 152.00
From a technical perspective, last week failed near the level of decline by 50 % of the leg to the bottom of January to February, and the subsequent slide prefers less than the very important 200 -day SMA. Moreover, the vibrations on the daily chart hold on the negative lands and indicate that the path of less resistance to the pair of the dollar is the downside. Consequently, any additional move can be considered towards a mark of 152.00 sales opportunity, which must determine instant prices near the 152.65 region (200 days SMA). This is followed by SMA for 100 days, currently square near the 153.15 area, which if abandoned, can lead to an increase in the match that exceeds 154.00 marks, towards the supply area 154.45-154.50 on its way to swing last week, about 154.75-154.80 .
On the other hand, it appears that the 151.25 region, or the lowest level of the Asian session, is now working as immediate support before the 151.00-150.90, or the general basin that was touched earlier this month. A convincing under the last will expose the psychological mark 150.00. Some of the selling sale should pave the way for the fall towards the area of 149.60-149.55 on its way to the round shape 149.00 and DECEMBER 2024 LOW, around the area of 148.65.
Japanese questions yen
The Japanese yen (JPY) is one of the most trading currencies in the world. Its value is widely determined by the performance of the Japanese economy, but more specifically through the policy of the Bank of Japan, and the differential between the revenues of Japanese and American bonds, or risk morale among merchants, among other factors.
One of the states of the Bank of Japan is the control of the currency, so its movements are the key to the yen. BOJ interfered directly in the currency markets sometimes, and generally to reduce the value of the yen, although it refrains from doing so often due to the political concerns of its main commercial partners. Boj Ultra-LOOSE’s monetary policy between 2013 and 2024 caused the yen to decrease against its main peers due to the difference in policy between the Bank of Japan and other major central banks. Recently, relaxation has gradually gave this super -support policy some support for the yen.
Over the past decade, the BoJ’s position of adhering to a high -minded monetary policy has has expanded a difference in politics with other central banks, especially with the American Federal Reserve. This is to support the expansion of the difference between American and Japanese bonds for a period of 10 years, which preferred the US dollar against the Japanese yen. BOJ’s decision in 2024 to gradually abandon the policy of the super taste, as well as discounts in the interest rate in other major central banks, narrows this difference.
The Japanese yen is often seen as a safe investment. This means that in times of stress on the market, investors are likely to put their money in the Japanese currency because of its reliability and supposed stability. Distinguished times are likely to enhance the value of the yen against other currencies that are seen as more dangerous for investment.
Customs fees are common questions
Customs duties are useful customs duties on some imports of goods or a category of products. Customs duties are designed to help local producers and manufacturers to be more competitive in the market by providing the price feature on similar goods that can be imported. Definitions are widely used as fever tools, along with commercial barriers and import shares.
Although customs tariffs and taxes generate government revenues to finance public goods and services, they have many differences. Customs duties are pre -paid in the entry port, while taxes are paid at the time of purchase. Taxes are imposed on taxpayers and individual work, while customs duties are paid by importers.
There is a school of thought between economists regarding the use of definitions. While some argue that definitions are necessary to protect local industries and address commercial imbalances, others see them as a harmful tool that can push prices up in the long term and lead to a harmful commercial war by encouraging customs tariffs.
During the period before the presidential elections in November 2024, Donald Trump explained that he intends to use the customs tariff to support the American economy and American producers. In 2024, Mexico, China and Canada accounted for 42 % of the total imports of the United States. During this period, Mexico emerged as the best source with $ 466.6 billion, according to the American Statistical Office. Thus, Trump wants to focus on these three countries when imposing definitions. It is also planned to use the revenues created by definitions to reduce personal income taxes.
2025-02-18 02:32:24
https://editorial.fxsstatic.com/images/i/USDJPY_Large.png