[July 18] Despite falling after comments from Minister for Digital Transformation Taro Kono, the market may bottom in the 155-yen range

2024.07.18 [July 18] Despite falling after comments from Minister for Digital Transformation Taro Kono, the market may bottom in the 155-yen range

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Recap of previous trading day (July 17)

Yesterday the USDJPY broke below the 158-yen range in which it had been moving sideways for some time. The price fell during the second half of the Tokyo session and into the London session, hitting a low of 156.09.

The trigger for this weakness in the USDJPY was a statement by Minister for Digital Transformation Taro Kono, who noted in an interview that a weaker yen leads to an increase in exports but also commented that the benefits to Japan are limited, because many Japanese companies now have production sites located overseas.

Recap of the Tokyo market and outlook going forward

In the first half of today's Tokyo session, the USDJPY hit a low of 155.36 before rebounding to the 156-yen range shortly after GMT 03:00.

Looking at the 1-hour chart of the USDJPY (as of GMT 03:25 on July 18), the price can be seen to have bottomed in the area of the -2 standard deviation of the Bollinger Bands, and is now rising after having crossed over the middle line.