The head of Morgan Stanley’s Japan operations said he hopes the yen will strengthen to around 140 against the dollar, and that the Bank of Japan’s actions are key to achieving this goal.
Bloomberg TV reporter Alberto Tamaura said in an interview that if the Bank of Japan fails to raise interest rates in June, it would impact bond and foreign exchange markets. He noted that the yen could fall to 170 against the dollar or rise to 140, depending on how events unfold, though he did not provide a specific timeline.
Tanaka said, “Some investors believe the Bank of Japan has been slow to act, so taking action is the first step. If global conditions stabilize, it might also help strengthen the yen.”
Despite a series of intervention measures taken by Japanese authorities since late last month to support the yen, the currency continues to face downward pressure. Investors are closely watching whether the Bank of Japan will raise interest rates next month, as concerns over inflation and fiscal policy have also triggered a sharp decline in government bonds.
Japan’s Finance Minister, Sanae Takaichi, told reporters on Tuesday that she pledged to “take bold action on the yen as needed” after meeting with G7 officials in Paris. Following her remarks, the yen strengthened against the U.S. dollar. Earlier, the yen had fallen to its lowest level since April 30, when the Japanese government conducted its first currency intervention since 2024.
Technical Analysis:
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Gold: Recent prices have been fluctuating in line with market news. As long as the U.S.-Iran deal remains unresolved, there is a risk of further price retracement. Currently, the market’s behavior shows that after a wave of liquidation, prices tend to return near the downward gap. Therefore, for today, we should moderately lower our focus on the low-liquidity sweep levels and also cap our expectations for potential rebounds. For detailed positions, please consult the plugin.
(Gold 15-minute chart)
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Nasdaq: Yesterday, the yellow zone we highlighted in our plugin was perfectly revisited, followed by a strong rebound and rally, achieving a profit-to-loss ratio of over 2x. Today, we are focusing on an upward breakout signal after price convergence; alternatively, we may wait for a detailed rebound point following further liquidity being swept near 28,500. For more details, please consult the plugin.
(NASDAQ 15-minute chart)
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Crude oil: Both bulls and bears are clearing liquidity, awaiting the final news. We will continue to hold onto the upside momentum during the day and look for a pullback. For detailed positions, please consult the plugin.
(Crude Oil 15-minute Chart)
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Today’s key financial data and events to watch:
14:00 Germany’s April Producer Price Index
17:00 Eurozone April Consumer Price Index Final Value
