Yen’s Surprise Comeback: From 1986‑Low to a Dash Above 160
The Japanese yen surprised everyone by bouncing out of its doom‑scoring low against the dollar, leaping nearly 50 pips higher in Monday’s morning session.
What’s the buzz?
- Yo‑yo effect: The yen hopped above the 160 mark, then slid right back to the 155 region after a brief flirtation with the dollar’s rally.
- Market reaction: Traders panic‑sold the dollar when the yen hit 155, only to squeal when it slipped back.
- Possible intervention? Rumors swirl that Tokyo stepped in, but no official word yet.
Why the hiccup might last
The Bank of Japan (BoJ) kept its short‑term rates steady, hinting it might raise them later but not now. Governor Kozo Oda sounded cautious, avoiding hasty cuts on bond buying.
- Inflation outlook: Tokyo’s CPI showed a mild dip, but overall market sentiment stays upbeat.
- Bond yields: Typically tame, yet a sudden spike could trigger a fiscal squeeze given Japan’s heavy debt load.
US side of the story
- Fed’s stance: With the PCE index nudged up to 2.7 % y/y, the Fed is expected to keep rates tight for the long haul.
- Yield gap: The U.S. and Japan are still lasciviously apart—this gap fuels the dollar’s resilience, dampening the yen’s shine.
What’s next? The FOMC and the NFP showdown
Investors are primed for the FOMC meeting and the Non‑Farm Payrolls. The outcomes will decide whether the dollar keeps its upper hand or the yen can find a more stable footing.
Bottom line: A fleeting yen lift amid tight policy
Despite a brief lift, the yen’s big comeback is likely just a blip. All eyes stay on the BoJ’s next move and the looming risk of Japan’s debt-powered puzzle. Until then, the dollar’s dominance remains the story of the week.
Technical analysis of (USD/JPY) prices
EUR/USD Turns Into a Roller‑Coaster: The Technical Scoop
Friday’s breakout from the upward‑sloping trend channel that stretches from the year’s low was a real game‑changer, giving the pair a spark that pushed it higher. But the Relative Strength Index (RSI) on the daily chart is finally saying “enough already” – that’s the first hint we’re pulling out of overbought territory. And that’s why we saw a surprisingly sharp dip on Monday morning. Can you feel the adrenaline? Of course you can.
Where the Action Is Likely to Hang Out
Okay, let’s get real: if the pair today takes a detour downwards, the level around 154.85 should act like a sturdy safety net. It’s the anchor point that marks the breaking of the resistance at 157.00, the big hurdle that stealthily pulls the bias toward a possible deeper slide.
- When you hit 154.85, the market is likely to pause — it’s a “hold your breath” moment.
- Cutting back past that point would flip the short‑term mood – more bearish vibes and a chance for a serious correction.
- Picture the chart bending down until it hits 154.85 again: the line is poised to become a major support.
Betting the Future
A quick recap: Friday’s breakout gives us a burst of momentum, the RSI tells us that the mugs are cooling, and 154.85 keeps us tethered. Stay tuned, strap in, and watch where this euro pair goes next!
USD/JPY Price Update from XS.com MT4
Hey traders, here’s the low‑down on the USD/JPY pair—no fluff, just the facts and a pinch of humor to keep things lively.
Momentum & Catalysts
When the pair pushes past the 157.00 mark, it’s like the market’s got a new spring under its boot. That break opens the door for a fresh upward push and maybe some tasty gains. But don’t go jackhammering into trades yet.
Why Hold Off?
- The Relative Strength Index (RSI) is still in the overbought zone on the daily chart, so we’re wise to give the market a breather.
- Let it consolidate—or better yet, play a correctionary dance—before we jump into the next wave of positive momentum.
Support Playbook
If the pair dips below that 157.00 sweet spot, pockets of strong support will emerge around 155.35‑155.30. Just a reminder to look for these levels: 154.85 and 152.90—the next stop on the ladder.
What’s the Risk?
A break under 154.85 could pressure the price down to the 154.00 mark, heading toward last Friday’s low in the 153.60‑153.55 range.
Key Levels To Watch
Support: 154.85 | 152.90 | 150.95
Resistance: 157.40 | 159.30 | 160.50
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