Japanese Yen Scores Notable Comeback As US-China Tensions Trigger Fears

Azeez Mustapha

Updated:

Unlock Daily Forex Signals

Select a Plan

£39

1 - month
Subscription

Select

£89

3 - month
Subscription

Select

£129

6 - month
Subscription

Select

£399

Lifetime
Subscription

Select

£50

Separate Swing Trading Group

Select

Or

Get VIP forex signals, VIP crypto signals, swing signals, and forex course free for lifetime.

Just open an account with one our affiliate broker and make a minimum deposit: 250 USD.

Email [email protected] with a screenshot of funds on account to get access!

Sponsored by

Sponsored Sponsored
Checkmark

Service for copy trading. Our Algo automatically opens and closes trades.

Checkmark

The L2T Algo provides highly profitable signals with minimal risk.

Checkmark

24/7 cryptocurrency trading. While you sleep, we trade.

Checkmark

10 minute setup with substantial advantages. The manual is provided with the purchase.

Checkmark

79% Success rate. Our outcomes will excite you.

Checkmark

Up to 70 trades per month. There are more than 5 pairs available.

Checkmark

Monthly subscriptions begin at £58.


The Japanese yen (JPY) has recorded one of its aggressive rallies against the US dollar (USD) in a long while, as the USD/JPY pair tapped the 130.39 low.

The solid performance in the yen comes amid rising US-China tensions over a Taiwan visit by US Representative Speaker Nancy Pelosi. Worries over the outcome of this visit have spurred massive capital outflows to safe-haven assets like the Japanese yen.

Japanese Yen Prints Multi-Week Low As US Bonds Sink

The yen posted a consecutive four-day gain against the dollar but lost the initiative in the London-New York session on Tuesday, with its total five-day decline of around 4.7%. The USD/JPY pair tapped the 130.39 low, a level not seen in early June.

Fears over the impact of the upcoming Taiwan high-profile visit sent investors running in all directions, pulling the stock market down as investors scurried into US Treasuries.

The benchmark 10-year Treasury yield dropped to 2.516%, its lowest figure since April. This decline in the US bonds market further closed the gap between the 10-year US debt and the equivalent Japanese bonds to 2.36%, the lowest figure since April.

In other news, the US economy contracted for a second consecutive quarter, triggering a technical recession. For now, traders would keep a close eye on other economic growth metrics, like the US jobs data ready for release on Friday.

Commenting on this, head of FX strategy at Saxo Bank John Hardy noted: “US data releases and the reaction in the US yields through the end of this week will be critical as JPY momentum has built a considerable head of steam here.”

 

You can purchase Lucky Block here. Buy LBlock

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.

Leave a Reply

Your email address will not be published. Required fields are marked *