The yen rose to its highest level in more than four months as global risk aversion and expectations of further interest rate hikes by the Bank of Japan enhanced its appeal.
The yen rose as much as 0.8% against the dollar to 148.57, the highest level since October 11. The move came after US President Donald Trump’s plan to strengthen restrictions on US semiconductors, which boosted demand for safe-haven assets.
Traders’ bullish sentiment on the Japanese yen for the coming year has reached its highest point since early October as they bet that the Bank of Japan will raise interest rates further. Overnight index swaps fully reflect an increase in borrowing costs in September and predict a 50% chance of an interest rate hike as early as June.
Recent data from Japan supports an interest rate hike, and the market is currently focusing on the Tokyo inflation data to be released this week. Due to rising food prices, the national inflation rate in January was higher than expected.
As traders prepare for further action, the Japanese yen option has become the most overvalued among the Group of Ten currencies in the coming month.
Technical analysis:
Gold: After a sharp drop to the 2880 level overnight, gold rebounded strongly. Currently, the key resistance is around 2930, which is an important position for the recent days’ price to switch between bulls and bears. If the price can recover this level within the day, it can be attempted to go long again; if it is blocked here, it may still fall to 2900 or below. For detailed positions, please consult the plugin.
(15-minute Gold Chart)
If you want to experience the same plugin as shown in the chart, please contact V: Hana-fgfg.
The Nasdaq index: The overnight price dropped below the 21,000 mark but quickly rebounded and recaptured it. For today, we continue to watch the resistance level at 21,300/400. If it breaks through and holds after a pullback, it may be a good time to consider another purchase. Additionally, if it continues to set new lows, one should be on the lookout for a rebound opportunity after the new low is established. For detailed positions, please consult the plugin.
(15-minute Nasdaq Index chart)
If you want to experience the same plugin as shown in the chart, please contact V: Hana-fgfg.
Crude oil: The price broke through the 70 mark overnight and dropped to the 69 range. The price has officially entered the lowest level of the past 12 months. In the short term, aggressive short positions should be avoided. Instead, opportunities for buying at the newly formed demand zone should be actively sought. For detailed positions, please consult the plugin.
(Crude Oil 15-Minute Chart)
If you want to experience the same plugin as shown in the picture, please contact V: Hana-fgfg.
Today’s key financial data and events to focus on:
15:00 Germany’s GfK Consumer Confidence Index for March
At 21:30, the President of the Federal Reserve Bank of Richmond, Thomas Barkin, will deliver a speech titled “The Past and Present of Inflation”.
23:00 US New Home Sales for January (Annualized Monthly Rate)
