The greenback continues the downward retracement again the Yen on Thursday’s session as global equities knocked down. The pair dips to sub 108.00 but BOJ unlikely intervene on the appreciation of the Yen rapidly.
“What (investors) are seeing now is that (Japanese) policymakers aren’t providing the support for dollar/yen that they would have expected,” said Shahab Jalinoos, global head of FX strategy at Credit Suisse in New York.
“We’re watching the foreign exchange market with a sense of tension, and we’ll take measures as appropriate,” said Yoshihide Suga, chief cabinet secretary, at a press conference. “The government believes excessive and disorderly movements in the exchange rate have a negative effect.” His language was mirrored by a senior official at the finance ministry FT reported.
“If you’re purely looking at the data, then there’s strong reasons for the BoJ to move at the end of April,” said Masamichi Adachi, an economist at JPMorgan in Tokyo. “But when you combine the international and domestic considerations then the BoJ is in a difficult position.”
The price is trading at 108.90 at early Asia’s session marches off from the Thursday’s low. On Friday’s session the price gave an upside breakout of inverse h&s pattern finds on m15 chart. The price completed the 100fe marching towards 200moving averages on the m15 chart. The 161.8 FE seems at 109.35 coincides with 50sma on the H1 chart.
Bank of America: JPY fell as Japanese Finance Minister Taro Aso’s remarks about the exchange rate, stimulating the yen / dollar long positions ahead of the weekend.
Japanese Chief Cabinet Secretary Yoshihide Suga: vigilant attention to the foreign exchange market; unilateral foreign exchange market movements, if necessary, to take appropriate action in respect of foreign exchange.