Japanese Yen Appreciates Amid China's Crackdown On Crypto, Evergrande Fears
September 24 2021 - 6:35AM
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The Japanese yen climbed against its most major counterparts in
the European session on Friday, with China's crackdown on
cryptocurrency industry and uncertainty about bond payments by
China Evergrande Group denting sentiment.
Chinese authorities said that all digital currency activities
are illegal and it would prevent financial institutions and
companies from offering services to activities and operations
related to these currencies.
Evergrande worries continued as it failed to make payments to
all its bondholders by the prescribed deadline on Thursday.
Evergrande's stocks tumbled in Hong Kong, sending ripples across
broader Chinese and European equity markets.
Data from the Ministry of Communications and Internal Affairs
showed that Japan overall inflation fell 0.4 percent on year in
August - shy of expectations for -0.3 percent, which would have
been unchanged from the July reading.
Core consumer prices, which exclude volatile food costs, was
unchanged on year. That matched forecasts following the 0.2 percent
annual decline in the previous month.
The yen rose to 129.38 against the euro and 151.00 against the
pound, off its early 10-day low of 129.76 and a 1-week low of
151.73, respectively. The yen is seen finding resistance around
128.00 against the euro and 149.00 against the pound.
The yen edged up to 77.46 against the kiwi and 80.00 against the
aussie, rising from its previous 10-day lows of 78.16 and 80.77,
respectively. On the upside, 76.00 and 78.00 are possibly seen as
the next resistance levels for the yen against the kiwi and the
aussie, respectively.
The yen recovered slightly to 119.47 against the franc, after
touching 119.74, which was its lowest level since September 13. The
yen may face resistance around the 118.00 region.
In contrast, the yen weakened to 110.70 against the greenback,
setting a 1-1/2-month low. The yen is likely to target support
around the 112.00 mark.
The yen fell back to 87.30 against the loonie, not far from
Asian session's more than a 2-week low of 87.32. If the yen slides
further, 89.00 is likely seen as its next support level.
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