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Forex Today: Ueda Talks Up the Japanese Yen

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

The Japanese Yen gained by more than 1% today against a basket of currencies following hawkish comments from the Governor of the Bank of Japan.

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  1. The Japanese Yen has gained strongly since this week’s open in Asia, following public comments by Governor Ueda of the Bank of Japan. Ueda stated that there may be enough data available to justify a rate hike by the end of 2023, which would end Japan’s negative interest rate and mark at least the beginning of the end of its standout super-easy monetary policy. The Japanese Yen has gained strongly today, with the USD/JPY currency pair down by more than 1,.15%, wiping out all last week’s gains, and calling into question whether the current bullish trend in that currency pair has already seen a long-term high.
  2. The yield on the Japanese Government’s 10-year bond rose to 0.7%, its highest since 2014.
  3. In the Forex market, the Japanese Yen is clearly the strongest major currency today, while the US Dollar is the weakest, despite its long-term bullish trend.
  4. Bitcoin is threatening to break down to new 2-month lows as the crypto sector remains weak.
  5. It is likely to be a relatively quiet day in the market, as it is a Monday and no high-impact data releases are scheduled today.
Adam Lemon
About Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

 

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