Japan's Financial Leaders Unite in Defense of the Yen, Sparking Rebound
| Action Insight Mid-Day Report 3-27-24 |
Japan's Financial Leaders Unite in Defense of the Yen, Sparking Rebound |
Japanese Yen staged in a notable rebound in European session, triggered by heightened market vigilance towards market interventions. This reaction comes in the wake of a significant meeting between Japan's Ministry of Finance, Financial Services Agency, and Bank of Japan, marking the first such tripartite gathering since last May. The meeting was called into action as Yen plunged to a 34-year low against Dollar briefly, prompting concern over the currency's rapid depreciation. Key figures, including Japan's top currency diplomat Masato Kanda, FSA Commissioner Teruhisa Kurita, and BoJ's head of policy, Seiichi Shimizu, were in attendance. The focal point of discussions was Yen's alarming descent, which officials see as straying from Japan's economic fundamentals. Kanda talked to reporters after the meeting, emphasizing the misalignment between Yen's weakening and Japan's economic health, pointing to speculative trading as a primary driver behind the currency's fall. He asserted that "We will take appropriate action against excessive moves without ruling out any options", delivering what is arguably the most direct and serious warning to financial markets since Yen's decline following BoJ's departure from negative interest rates earlier in the month... |
USD/JPY Mid-Day Outlook Daily Pivots: (S1) 151.13; (P) 151.35; (R1) 151.64; More... Intraday bias in USD/JPY is turned neutral gain as it retreated after edging higher to 151.96. On the downside, break of 150.25 support should confirm short term topping, and turn bias back to the downside for 55 D EMA (now at 148.93). Nevertheless, sustained break of 151.93 key resistance will confirm long term up trend resumption. Next near term target will be 61.8% projection of 140.25 to 150.87 from 146.47 at 153.03. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 00:00 | AUD | Westpac Leading Index M/M Feb | 0.10% | -0.10% | | 00:30 | AUD | Monthly CPI Y/Y Feb | 3.40% | 3.50% | 3.40% | | 09:00 | CHF | Credit Suisse Economic Expectations Mar | 11.5 | 10.2 | | 10:00 | EUR | Eurozone Economic Sentiment Indicator Mar | 96.3 | 96.1 | 95.4 | 95.5 | | 10:00 | EUR | Eurozone Industrial Confidence Mar | -8.8 | -9 | -9.5 | -9.4 | | 10:00 | EUR | Eurozone Services Confidence Mar | 6.3 | 7.8 | 6 | | 10:00 | EUR | Eurozone Consumer Confidence Mar F | -14.9 | -14.9 | -14.9 | | 14:30 | USD | Crude Oil Inventories | -0.7M | -2.0M |
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