Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 1.13% 🇨🇭CHF: 0.82...
The Japanese Index below is a simple construction applying an equal weighting to the more commonly traded currency pairs, providing an indication of yen performance. The recent move higher has disturbed the otherwise steady downtrend – hinting at large scale yen purchases by Japanese officials, potentially.
Today’s notable drop in USD/JPY has raised speculation of another round of yen purchases from Tokyo. After trading comfortably above 160.00, the pair now looks to 155.00 as the next level of support with 151.90 following thereafter. The outlook for the yen remains precarious as it appears the strategy to keep the yen supported may have shifter to smaller, more frequent purchases instead of a massive, single transaction to sell dollars for yen. This is, of course, provided the recent volatility can be verified to have come at the instruction of Japan’s currency officials.Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors.