Reported 8 months ago
Provided by KGI Futures, Huang Yanhong analyzes the recent trend of the Japanese yen on June 19, 2024, at 4:10 PM. The yen continues to approach a 34-year low against the US dollar, hovering around 1 dollar to 160 yen. Despite the strong statement by the Governor of the Bank of Japan, Haruhiko Kuroda, indicating a possible rate hike at the July policy meeting based on current economic data, the yen has not been able to shake off its weak trend, with the USD/JPY exchange rate falling to around 158. From a technical perspective, yen futures' weekly and 10-day moving averages continue to trend downwards. It is recommended to engage in bearish operations along the 10-day moving average. The Bank of Japan announced last week to maintain interest rates unchanged while reducing government bond purchases to restore market rates. However, the action of reducing bond purchase scale did not curb the depreciation of the yen, as the Bank of Japan will release detailed plans in July. Short-term yen weakness is expected to persist until the July policy meeting, where clear hawkish signals could alleviate the ongoing downward pressure on the yen. With the end of the Japanese utility fee subsidy plan in June and a possible slowdown in cost-push inflation, the Bank of Japan needs stable wage growth and clear consumption recovery to further raise interest rates.
Source: YAHOO