Forex Today: Markets Weigh Suspected BoJ Yen Intervention - 30 April 2024

After falling sharply to new 34-year lows, suspected intervention by the Bank of Japan produced a massive swing in favour of the Yen, before the Yen gave up some gains later.   

1. The Japanese Yen is in market focus today after its dramatic price movements of recent days. The Yen ended last week sharply lower at a new 34-year high, but suspected intervention by the Bank of Japan during Monday’s Tokyo session sent the Yen flying high, producing massive price movements in the USD/JPY currency pair and in most Yen crosses. The Yen has given up some of Monday’s gains against various currencies. The Bank of Japan has refused to admit whether it intervened, with Japan’s top currency diplomat Kanda refusing to comment on whether there was an intervention. The market believes there was an intervention, but questions whether it will be successful over anything but the short-term. Monday’s price movements in favour of the Yen were the biggest daily gains made by the Yen in 34 years.
2. Stock markets are continuing to rise weakly over recent days, especially major US indices such as the NASDAQ 100 Index and the S&P 500 Index. However, both indices are well off their recent record highs. These rises come despite a general expectation that the Fed will be slow in cutting its interest rate.
3. In the Forex market, since today’s Tokyo open, the strongest major currency has been the US Dollar, and the weakest major currencies have been the New Zealand and Australian Dollar, putting the NZD/USD and AUD/USD currency pairs in focus. The Japanese Yen is also showing some strength probably due to the Bank of Japan’s recent suspected intervention in the market in favour of the Yen.
4. Copper futures continue to rise strongly to new 2-year highs, which will be of interest to trend traders, who will want to be involved here on the long side.
5. There will be several high-impact data releases later:
   • Canadian GDP
   • US CB Consumer Confidence
   • US Employment Cost Index
   • New Zealand Unemployment Rate
6. The earlier release of Chinese Manufacturing PMI data came in as expected.
7. It will be a public holiday tomorrow in France, Germany, Italy, Switzerland, and China.

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