Adjustments Near 150 Yen for USD/JPY: Strengthening of Selling on Rallies Amid Risk Aversion
Yesterday, the USD/JPY rose to 149.98 in overseas markets, nearing the significant 150 yen level. Subsequently, a combination of dollar selling due to a decline in US bond yields and profit-taking led to a correction down to 149.45. Although it briefly recovered to around 149.75 in the early afternoon, it fell again to 149.44 amidst concerns over China risk. The sharp declines in Chinese and Hong Kong stocks, along with the depreciation of the yuan, have dampened market sentiment, putting upward pressure on USD/JPY.
Furthermore, the perception of Trump’s advantage in the upcoming US presidential election has added to the selling pressure on China, fostering a risk-averse atmosphere. Selling pressure around the 150 yen level for USD/JPY has been confirmed, and a decline towards the 149 yen range appears likely.
The EUR/USD has dropped from the 1.08 level to 1.0885, indicating heavy resistance on recoveries. Similarly, EUR/JPY, GBP/JPY, AUD/JPY, and NZD/JPY are experiencing strong yen buying pressure and are trending lower. Both dollar buying and yen buying are progressing, raising awareness of the risk that the declines in cross-yen pairs could be more pronounced than those in USD/JPY.
Today, I am focusing on the Canadian Consumer Price Index (CPI) scheduled. If there is movement in the Canadian dollar, I will consider entering a position based on that.
