Yen Surges On BoJ Reports23 July 2018 by Dave Evans
Morning Report: 07.00 London
The yen has surged on so far unsubstantiated reports that the BOJ is looking to change its monetary policy including interest rate targets. Meanwhile, the US dollar opened the week on the back foot following yet another round of Trump trade tariff worries and geopolitical Twitter spats.
The USD/JPY gapped lower at the open, dropping below 111.00 – a stern test as this level previously acted as resistance. The EUR/JPY is following a similar track, with the EUR/JPY gapping to 130.00. The GBP/JPY is trading below the 146.00 level. Meanwhile, the AUD/JPY is sitting just above support above 82.00.
The US dollar gapped lower at the open, with the EUR/USD opening well above 1.1700 before dropping back through the early morning. The GBP/USD gapped above Friday’s close and is mostly unchanged this morning. Meanwhile the AUD/USD slipping back to unchanged after a promising start.
The EUR/GBP is reversing back to unchanged, keeping up Friday’s trend reversal below 0.8950.
The Swissy is back well below parity again following Friday’s reversal.
Coming up today
Today, we have US existing home sales at 15.00.
MPC member Broadbent speaks at 18.00.
Trade Idea
The AUD/JPY is back on its downswing, as the yen re-finds its feet. A return to the lows could be on the cards.
