Breaking: USD/JPY pops 149.00, highest since June 1990s

The Japanese yen hits a new 32-year low.
Will the BoJ intervene again this week?

FXStreet Team FXStreet

USD/JPY has pierced the 149.00 level as per the following 5-month chart:

The bull eye the prospects of running up to the psychological level of 150 where speculating lies for further intervention from the Japanese authorities. At the start of the week, Japan’s top currency diplomat Masato Kanda said authorities would firmly respond to any excessive currency fluctuations.

Each country would respond appropriately to an agreement on foreign exchange market moves by the Group of Seven (G7) and G20 meetings last week, he said.''

Japan's Finance Miniter Shun'ichi Suzuki has also stepped in and said that they will take decisive action against excess forex moves based on speculation. Suzuki says they are constantly watching fx movements with a sense of urgency.

The yen has declined nearly 30% against the dollar this year already as the divergence between the US Federal Reserve's hawkish stance and the Bank of Japan's ultra-lose policy. Last month, Japanese authorities conducted their largest-ever currency intervention to support the rapidly falling yen, having spent 2.84 trillion yen for its efforts which yielded a fleeting effect.

Meanwhile, the US dollar was softer against a basket of major currencies and sterling jumped on Monday after Britain's new finance minister ditched most of the government's "mini-budget", while better-than-expected earnings from Bank of America helped to boost risk appetite.

Author

FXStreet Team

FXStreet

EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold: Volatility persists in commodity space

After losing more than 8% to end the previous week, Gold remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000. The US economic calendar will feature Nonfarm Payrolls and Consumer Price Index data for January, which could influence the market pricing of the Federal Reserve’s policy outlook and impact Gold’s performance.

Week ahead: US NFP and CPI data to shake Fed cut bets, Japan election looms

US NFP and CPI data awaited after Warsh’s nomination as Fed chief. Yen traders lock gaze on Sunday’s snap election. UK and Eurozone Q4 GDP data also on the agenda. China CPI and PPI could reveal more weakness in domestic demand.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.