USDJPY is regaining resilience following the positive impact of Friday’s event. The opening of Monday morning shows price strength gaining traction close to the 150.00 key level. This came as a result of a major impact based on the intervention to support the yen market on Friday. A major decline has been seen when the pair plummets from a 32-year high, which is close to the 151.950 key zone, down to the low of 145.510, which is a record of close to $20 billion in intervention.
The Japanese government has continued its verbal intervention, pointing out that the foreign exchange market movement must contemplate fundamentals also. News on the trade balance with export and import trade on Thursday. The yen market, however, failed to make any gains as the dollar continued to rise. According to the report released on Friday, the US central bank will debate future rate hikes in the coming days.
The closing of last week’s session trade finished red. Based on Canada and United Kingdom reports, September inflation, however, stays high compared to the EU’s, which made a slide lower compared to the previous figures, which is by a minute margin. Based on this drawback, the global bond yield went up like a bat out of hell as expectations for more central bank tightening increased. US bonds rose, providing support for the USDJPY market.
However, the US housing data disclosed during the New York session still has a major impact on the Federal Reserve rate hikes. The stats gained for September were not encouraging as a decline of 8.1% was seen against the previous month, which was August, which meant an increase of about 13% with mortgage rates still soaring.
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