{"id":297395,"date":"2024-05-07T22:23:03","date_gmt":"2024-05-07T16:53:03","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=297395"},"modified":"2024-05-07T22:23:03","modified_gmt":"2024-05-07T16:53:03","slug":"usd-jpy-trades-higher-as-usd-finds-its-feet-intervention-still-a-threat-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/usd-jpy-trades-higher-as-usd-finds-its-feet-intervention-still-a-threat-crypto-news\/","title":{"rendered":"USD\/JPY trades higher as USD finds its feet. Intervention still a threat &#8211; Crypto News"},"content":{"rendered":"<p><\/p>\n<div id=\"fxs_article_content\">\n<ul>\n<li><strong>USD\/JPY recovers after last week\u2019s losses on possible intervention and weak US jobs data.\u00a0<\/strong><\/li>\n<li><strong>Janet Yellen\u2019s mild criticism of intervention may have helped the pair higher.\u00a0<\/strong><\/li>\n<li><strong>Japanese currency officials continue to threaten intervention, filling the road higher with \u201cpotholes\u201d.\u00a0<\/strong><\/li>\n<\/ul>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fxstreet.com\/currencies\/usdjpy\" data-fxs-autoanchor=\"\">USD\/JPY<\/a> trades at 154.35 on Tuesday, up almost three tenths of a percentage point, mainly as a result of the US Dollar (USD) ending its post-FOMC losing streak and recovering on the back of comments from Federal Reserve (Fed) officials suggesting they are not in a hurry to cut interest rates.\u00a0<\/p>\n<p>The maintenance of higher interest rates for longer and further delaying of possible cuts is beneficial for the USD as it attracts more foreign capital inflows. This, and the fact that \u2013 in the case of USD\/JPY \u2013 interest rates in the US are so much higher than in Japan, further aids USD and disproportionately disadvantages JPY.\u00a0<\/p>\n<h2 class=\"fxs_headline_medium\">Barkin Rules out rate cut \u2013 BBH<\/h2>\n<p>The <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fxstreet.com\/macroeconomics\/central-banks\/fed\" data-fxs-autoanchor=\"\">Federal Reserve bank<\/a> of Richmond Chair Thomas Barkin said on Monday that he thought rates were high enough to bring inflation back to our target, but that \u201cThe full impact of higher rates is yet to come.\u201d\u00a0\u00a0<\/p>\n<p>\u201cThis is basically ruling out a rate cut,\u201d concluded analysts at Brown Brothers Harriman:\u00a0<\/p>\n<p>Another bullish factor for USD\/JPY is that overall interest-rate cut expectations in the US continue to fade. Now it\u2019s not till November that a first rate cut is fully priced in.\u00a0<\/p>\n<p>\u201cOdds of a June cut remain steady at around 10%, but July odds have fallen to 35% and September odds have fallen to 85%.\u00a0 A November cut is still fully priced in,\u201d continues BBH.\u00a0<\/p>\n<h2 class=\"fxs_headline_medium\">Yellen cautions Japanese authorities\u00a0<\/h2>\n<p>USD\/JPY has benefited from another backdraught\u00a0of late after it was revealed that Janet Yellen was not as supportive of Japan and Korea using intervention to prop up their currencies as had been thought \u2013 especially after their recent currency summit.\u00a0<\/p>\n<p>In words over the weekend, Yellen was more critical, saying she\u2019d prefer it if intervention was only used on rare occasions and that the US was notified prior to the event.\u00a0<\/p>\n<p>\u201cUS Treasury Secretary Janet Yellen\u2019s observation that FX intervention should be rare, and accompanied by consultation, doesn\u2019t suggest a weaker Dollar is particularly desirable,\u201d said Kit Juckes,\u00a0 FX Strategist at Societe Generale in a note on Tuesday.<\/p>\n<p>\u201cIt will embolden Yen bears\u2026but whether we see another test, or a break of USD\/JPY 160, depends more on the CPI data than anything else,\u201d he added.\u00a0\u00a0<\/p>\n<h2 class=\"fxs_headline_medium\">Ueda changes his mind about impact of weak Yen\u00a0<\/h2>\n<p>Given the continued verbal warnings from Japan\u2019s various \u201cPrinces of the Yen\u201d however, USD\/JPY bulls will still need to be mindful of possible \u201csnakes\u201d of intervention bringing prices sliding back down.\u00a0<\/p>\n<p>On Tuesday, Bank of Japan (BoJ) Governor Katzuo Ueda once again repeated that excessive Yen moves are undesirable. However, he added that he was closely monitoring how the weak Yen affected \u201cprices\u201d.\u00a0<\/p>\n<p>Analysts at BBH point out that this marks a 180 degree pivot for Ueda who said after the April 26 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fxstreet.com\/macroeconomics\/central-banks\/boj\" data-fxs-autoanchor=\"\">BoJ<\/a> meeting, that a weak Yen was \u201cnot having a big impact on underlying prices yet\u201d.\u00a0<\/p>\n<p>His blunder after the BoJ meeting led to \u201cfurther yen weakness and so Ueda seems to be doing some damage control,\u201d BBH added.\u00a0<\/p>\n<p>Ueda\u2019s change of tone may be designed to appease certain business groups who are not happy with a weak Yen.\u00a0 The chairman of Japan\u2019s Keidanren business lobby, Masakazu Tokura, said recently, the Yen is too weak beyond 150 to the Dollar.<\/p>\n<p>Further, top currency diplomat Masato Kanda also repeated his usual warning that the government will respond appropriately if there are excessive or disorderly movements in the FX market.\u00a0<\/p>\n<p>All in all it suggests many reasons why\u00a0the Japanese authorities are still probably\u00a0ready to pull the trigger on further intervention, suggesting USD\/JPY&#8217;s ride higher could continue to be a bumpy one.\u00a0<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>USD\/JPY recovers after last week\u2019s losses on possible intervention and weak US jobs data.\u00a0 Janet Yellen\u2019s mild criticism of intervention may have helped the pair higher.\u00a0 Japanese currency officials continue to threaten intervention, filling the road higher with \u201cpotholes\u201d.\u00a0 USD\/JPY trades at 154.35 on Tuesday, up almost three tenths of a percentage point, mainly as [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":15778,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,2321,255,250,252,247,253,249,275,256,254],"class_list":["post-297395","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-fundamental-analysis","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-usdjpy","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/297395","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=297395"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/297395\/revisions"}],"predecessor-version":[{"id":297397,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/297395\/revisions\/297397"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/15778"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=297395"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=297395"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=297395"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}