Japanese Yen Advances Amid Risk Aversion On Trade Concerns
August 04 2019 - 11:19PM
RTTF2
The Japanese yen strengthened against its major counterparts in
the Asian session on Monday on safe-haven demand, as Asian shares
declined following the negative cues from Wall Street Friday amid
worries about global economic growth following the rising trade
tensions between the U.S. and China as well as between Japan and
South Korea.
China has vowed to retaliate to the U.S. decision to impose
tariffs on $300 billion worth of Chinese goods.
China's central bank allowed the yuan to weaken to more than a
decade low to counter U.S. President Donald Trump's latest tariff
threat.
The exchange rate fell more than 1 percent after the People's
Bank of China set its daily reference rate at a weaker level than
6.9 for the first time since December.
Survey results from IHS Markit showed that Japan's service
sector began the third quarter with a moderate growth pace in
July.
The Jibun Bank services Purchasing Managers' Index fell slightly
to 51.8 in July from 51.9 in June.
The yen appreciated to more than 7-month highs of 105.79 against
the greenback and 71.40 against the aussie, from its early lows of
106.68 and 72.47, respectively. The yen may possibly challenge
resistance around 104.00 against the greenback and 67.00 against
the aussie.
Reversing from its early lows of 108.55 against the franc and
80.78 against the loonie, the yen climbed to 2-month highs of
108.04 and 79.98, respectively. The currency is likely to face
resistance around 106.00 versus the franc and 76.5 against the
loonie.
The yen advanced to more than a 2-year high of 117.67 against
the euro and near a 3-year high of 128.28 against the pound,
reversing from its early lows of 118.47 and 129.62, respectively.
If the yen rises further, 114.00 and 125.50 are likely seen as its
next resistance levels against the euro and the pound,
respectively.
The yen strengthened to a 6-1/2-year high of 68.66 against the
kiwi, from a low of 69.66 hit at 5:50 pm ET. On the upside, 66.00
is possibly seen as the next resistance level for the yen.
Looking ahead, PMI reports from major European economies and
Eurozone Sentix investor confidence index for August are due in the
European session.
At 10:00 am ET, U.S. ISM non-manufacturing composite index for
July are scheduled for release.
CHF vs Yen (FX:CHFJPY)
Forex Chart
From Aug 2024 to Sep 2024
CHF vs Yen (FX:CHFJPY)
Forex Chart
From Sep 2023 to Sep 2024