12 Feb 2015
USD/JPY drops to 118.50
FXStreet (Córdoba) - The USD/JPY pair dropped sharply during the American session, weakened by falling Treasury yields and weak US economic data and bottomed at 118.48, reaching the lowest price since Tuesday.
Afterwards rebounded and rose back toward 119.00 but it was unable to hold above. Currently trades at 118.90, consolidating losses. The US dollar is losing more than 150 pips against the yen on Thursday, having the worst performance in almost two months.
USD/JPY ahead of Japan’s end of fiscal year
According The Bank of Tokyo Mitsubishi UFJ Research Team, the most important implication of the recent monetary turmoil, with negative rates and SNB shock, “ is that many market participants have been aware of the risk of a JGB yield rise. In 2015, a Fed rate hike will likely support USDJPY buying. However, JGB yields may still remain volatile and JPY swap rates may stay independent. USDJPY will likely rise more moderately”.
Afterwards rebounded and rose back toward 119.00 but it was unable to hold above. Currently trades at 118.90, consolidating losses. The US dollar is losing more than 150 pips against the yen on Thursday, having the worst performance in almost two months.
USD/JPY ahead of Japan’s end of fiscal year
According The Bank of Tokyo Mitsubishi UFJ Research Team, the most important implication of the recent monetary turmoil, with negative rates and SNB shock, “ is that many market participants have been aware of the risk of a JGB yield rise. In 2015, a Fed rate hike will likely support USDJPY buying. However, JGB yields may still remain volatile and JPY swap rates may stay independent. USDJPY will likely rise more moderately”.