The BoJ Drives USD/JPY Towards 95, What Could Push Us Through It?
The battle between risk and stimulus continues for dominance over the FX and capital markets. The USDJPY and other yen crosses were the most recent casualty through the BoJ's hold on appetite-sating stimulus. With market benchmarks like the S&P 500 and Nikkei 225 as well as pairs like USDJPY and AUDJPY struggling to maintain multi-year or record highs; additional external support becomes increasingly crucial. When the BoJ confirmed that it was content with its incredible policy escalation from April, USDJPY responded with its biggest drop in three years. But both this key pair and EURJPY have yet to transition to the next leg of a committed bear phase. What can usher these pairs to the next chapter of a lasting bear trend? The same thing that would swamp EURUSD, the S&P 500 and most other benchmarks. We discuss this and more in today's video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.