Yen Struggles After Volatile Start

2024-07-12
Summary:

The yen softened after Friday's volatile start, with an earlier sharp surge sparking speculation that Tokyo intervened to lift it from 38-year lows.

EBC Forex Snapshot, 12 Jul 2024


The yen was soft after a volatile start on Friday as earlier sharp surge stoked speculation that Tokyo had intervened to lift the currency away from 38-year lows.


Tokyo's top currency diplomat, Masato Kanda, said on authorities will take action as needed in the foreign exchange market but declined to comment on whether authorities had intervened.

USDJPY

The dollar as a result has been on the defensive after data showed US consumer prices fell for the first time in four years in June. Traders are now pricing in 93% chance of the Fed cutting rates in September.

Citibank vs. HSBC Currency Pair Data Comparison

Citi (as of 8 Jul) HSBC (as of 12 Jul)

support resistance support resistance
EUR/USD 1.0666 1.0916 1.0720 1.0955
GBP/USD 1.2616 1.2860 1.2697 1.3034
USD/CHF 0.8827 0.9158 0.8899 0.9038
AUD/USD 0.6595 0.6847 0.6651 0.6832
USD/CAD 1.3577 1.3846 1.3560 1.3729
USD/JPY 156.23 163.40 156.81 161.39

The green numbers in the table indicate that the data has increased compared with the previous time; the red numbers indicate that the data has decreased compared with the previous time; and the black numbers indicate that the data has remained unchanged.


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