Japanese Yen Weakens On Easing Concerns Over Energy Supply, Debt Ceiling
The Japanese yen fell against its most major counterparts during
the Asian session on Thursday, as investor sentiment improved after
a drop in oil prices following Russian President Vladimir Putin's
assurance to increase natural gas exports to Europe to resolve the
Putin said that Russia is prepared to stabilize global energy
markets by sending more gas to Europe than it has contracted for
In another development, Senate Minority Leader Mitch McConnell
on Wednesday announced a short-term offer to suspend the U.S. debt
ceiling after Democrats intensified pressure on Republicans to act
to avert a default.
In a Twitter statement, McConnell said that the GOP will allow
Democrats to use normal procedures to pass an emergency debt limit
extension at a fixed dollar amount to cover current spending levels
On the U.S.-China front, President Joe Biden and Chinese leader
Xi Jinping agreed to hold a virtual meeting before the end of the
year to defuse tensions between the two countries.
Preliminary data from the Cabinet Office showed that Japan's
leading index decreased in August.
The leading index, which measures the future economic activity,
fell to 101.8 in August from 104.1 in July. This was the lowest
since February, when it was 98.9.
The yen dropped to 120.24 against the franc, 128.92 against the
euro and 151.56 against the pound, off its prior highs of 119.84,
128.64 and 151.19, respectively. The next possible support for the
yen is seen around 124.00 against the franc, 130.00 against the
euro and 153.00 against the pound.
The yen reversed from its early highs of 80.97 against the
aussie, 76.93 against the kiwi and 88.42 against the loonie, edging
down to 81.32, 77.24 and 88.70, respectively. If the yen extends
decline, 83.00, 80.00 and 90.00 are possibly seen as its next
support levels against the aussie, the kiwi and the loonie,
In contrast, the yen rose to 111.23 against the greenback from
yesterday's close of 111.40. The yen may locate resistance around
the 110.00 level.
Looking ahead, the European Central Bank publishes the account
of the monetary policy meeting of the Governing Council held on
September 8 and 9 at 7:30 am ET.
Canada Ivey PMI for September, U.S. weekly jobless claims for
the week ended October 2 and consumer credit for August will be
featured in the New York session.
Euro vs Yen (FX:EURJPY)
From Oct 2021 to Nov 2021
Euro vs Yen (FX:EURJPY)
From Nov 2020 to Nov 2021