Currently, USD/JPY is trading at 111.87, up 0.34% on the day, having posted a daily high at 111.97 and low at 111.47.
JPY is weak, down 0.33% from Wednesday’s close and underperforming most of the G10 currencies. WTI has been the recent driver, forcing a bid in the greenback with a sharp fall on OPEC while the US stocks remain on the bid and pressuring yen lower at the same time.
“Asian equity indices—with notable rallies in China—are lending a risk-on tone to markets and weighing on JPY,” explained analysts at Scotiabank, adding, “the broader tone remains the greatest near-term risk for JPY and markets remain tentative in the wake of China’s credit rating downgrade and concerns relating to the Fed’s balance sheet normalization.”
“USD/JPY is showing signs of attempting to stabilise above the 110.00 200 day ma but intraday rallies will need to overcome 112.05 as and we would allow for a recovery,” argued analysts at Commerzbank. “Meanwhile while capped by 112.05 (imoku 1) we will assume it remains capable of testing the 200 day ma. This guards the 108.13 April low.”
Further OPEC headlines and Oil related news stories: