(VIANEWS) – USD/JPY gained bullish momentum in the first week, climbing to the 143 level before turning its back during European trading hours. This was almost unchanged from a daily basis.

FXStreet reported that the JPY was unable to find demand because of the Asian session’s risk-positive environment. Seiji Kihara, the Japanese Chief Cabinet Secretary, reiterated his belief that the government would take all necessary measures to prevent excessive falls in the yen. However the pair did not respond to this statement.

USD/JPY (USDJPY) is currently on bearish momentum. At 01:06 EST on Wednesday, 14 September, USD/JPY (USDJPY) is at 143.5620, 0.7487% down since the last session’s close.

USD/JPY gathered bullish momentum at the beginning of the week and climbed to the 143.50 area before reversing its direction during the European trading hours. As of writing, the pair was trading at 142.50, where it was virtually unchanged on a daily basis.

As reported by FXStreet, the risk-positive market environment during the Asian session made it difficult for the JPY to find demand. Japanese Deputy Chief Cabinet Secretary Seiji Kihara reiterated that the government will take necessary steps to counter excessive declines in the yen butthe pair showed no reaction to these comments.

Why is USD/JPY Currency Going Down?

If you’re a currency trader, you probably wonder why the USD/JPY currency pair is going down. It is the case that the US economy is growing much faster than Japan’s, and the yen is under pressure as a result. Fortunately, the Japanese government has put into place several initiatives to support the economy. The Bank of Japan has also stepped up its bond-buying program to keep 10-year yields within its target range.

The USD/JPY currency pair’s price is determined by the economic laws of supply and demand, and the prices of the two currencies are closely tied to those of their national bonds. One way in which investors express their views on this pair is by using a carry trade. This type of transaction, which involves borrowing dollars in order to buy Japanese yen, deflates the Japanese yen. As such, carry trade is considered a bad indicator for the Japanese economy.

The USD/JPY currency pair is a reflection of market risk. When markets are seeking risk, Treasury bond yields rise and the Japanese yen drops. A falling yield is a sign of panic and weakens the U.S. dollar against the yen.

The yen is expected to continue declining in the near term. As long as the Fed pencils in more rate hikes this year and the BoJ sticks to its accommodative stance, the yen should stay under pressure and continue to fall. Even if the economy recovers, the BoJ may intervene if the Japanese yen falls much further.

USD/JPY (USDJPY) Range

About USD/JPY’s daily highs and lows, it’s 0.734% down from its trailing 24 hours low of $144.62 and 0.967% down from its trailing 24 hours high of $144.96.

USD/JPY’s yearly highs and lows, it’s 31.571% up from its 52-week low and 0.979% down from its 52-week high.

Volatility

USD/JPY’s last week, last month’s, and last quarter’s current intraday variation average was 0.08%, 0.39%, and 0.65%, respectively.

USD/JPY’s highest amplitude of average volatility was 0.69% (last week), 0.64% (last month), and 0.65% (last quarter), respectively.

Forex Price Classification

According to the stochastic oscillator, a useful indicator of overbought and oversold conditions, USD/JPY’s Forex is considered to be oversold (<=20).

Previous days news about USD/JPY (USDJPY)

  • Usd/jpy manages to hold above 142.00 mark, focus remains on US inflation data. According to FXStreet on Tuesday, 13 September, “Furthermore, speculations that authorities may soon step in to arrest a freefall in the Japanese yen also contribute to offered tone surrounding the USD/JPY pair. “, “This, in turn, will help determine the next leg of a directional move for the USD/JPY pair. “
  • Usd/jpy price analysis: sellers attack fortnight-long support around 142.50. According to FXStreet on Tuesday, 13 September, “However, an upward sloping trend line from August 11, close to 140.80, holds the key to the USD/JPY bear’s entry.”, “On the contrary, a convergence of the 21-SMA and the downward sloping trend line from the last Wednesday, close to 143.10, appear a tough nut to crack for the USD/JPY buyers.”
  • Usd/jpy price analysis: Marches firmly towards 144.40 after elevated US CPI. According to FXStreet on Tuesday, 13 September, “Worth noting that, albeit being upward biased, the Relative Strength Index (RSI), alongside price action, shows signs that the USD/JPY is overbought. “, “Short term, the USD/JPY one-hour scale depicts the major testing of September’s 8 daily high at 144.44. “
  • Usd/jpy trims intraday gains, back below 143.00 amid broad-based USD weakness. According to FXStreet on Monday, 12 September, “This, in turn, will drive the USD demand and provide a fresh directional impetus to the USD/JPY pair. “, “The USD/JPY pair retreats nearly 90 pips from the daily high and drops back closer to mid-142.00s during the early European session on Monday.”

More news about USD/JPY (USDJPY).

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