How low can you go, Mr. Yen? The Japanese currency has suffered a real beatdown last week and while the decline hasn’t deepened so far this week, it will take a lot to convince of a turnaround in the momentum.
USD/JPY is inching above 142.00 now but faces some resistance from its 21 November high at 142.25, before talking about the 145.00 mark. As for the likes of EUR/JPY and GBP/JPY, they continue to be standouts in their own right. The former is at its highest since 2008, trading up to 155 levels now after a break of 150. The latter is at its highest since 2015, trading around 181.50 now with little in the way of a push towards the 2015 highs just above 195 next.
The bond market will continue to be a key spot to watch in that respect but so far, Treasury yields have been rather resilient after the Fed – even if the dollar hasn’t really been so.
Elsewhere, gold continues to struggle as sellers are eyeing another potential test of the 100-day moving average again. The key support level is seen at roughly $1,942 currently and will be one to watch in the week ahead.
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