- Japanese Yen Sees Biggest Decline Since Q1 Crash
- Technical Hurdles Ahead for USD/JPY
JAPANESE YEN SEES BIGGEST DECLINE SINCE Q1 CRASH
The COVID vaccine announcements parked the selling of the Japanese Yen a well received move after Japanese Officials were fretting over the Yen’s recent appreciation. USD/JPY tracked risk assets and Treasury yields northwards booking the biggest 1-day percentage gain since the covid inspired sell-off amid a rise from 103.20 to 105.60.
Furthermore, as markets have been long JPY, the move has been exaggerated by a sizable liquidation.
Looking ahead and following the latest vaccine news attention will be updates from other vaccine makers such as Moderna, which is expected to produce similar results to Pfizer. Additional upwards pressure on yields could underpin USD/JPY.