Disappointment selling predominates against the backdrop of the dollar-yen and the Bank of Japan receding additional easing observations

• Dollar yen Temporarily fell to 106.67 US time
• Background is the recession of BOJ monetary easing and dollar selling for risk appetite
• Eurodollar rose to 1.1452 for the first time in about 4 months
• The dollar, technical, and fundamentals are wary of the high price
• Foreseeable development to try 7/10 low price 106.64

Today’s expected range: 106.50-107.30

Foreign exchange rate overview Dollar/yen fell on Wednesday, 15th.

(1) In addition to maintaining the current monetary policy at the BOJ Monetary Policy Meeting (postponed additional easing),

(2) At the press conference of President Governor Kuroda, “the effects of corona response have been demonstrated since March” Was observed (regression of additional easing observation),

(3) disappointment (yen buying) due to (1) and (2) above,

(4) US President Trump’s signing of “Hong Kong Law” (concern over intensifying US-China conflict),

(5) Western stocks and Dollar selling pressure, which was a risk appetite for rising crude oil futures prices, weighed on the price, which temporarily widened to 106.67 US time.

The price is heavy even though it picks up after closing, and at the time of writing this article (as of 4;45 Cambodian time), it has been around 106.97. In addition, the beige book announced yesterday said that it is still below the pre-pandemic level and that the economic outlook is extremely uncertain, but the market reaction has been limited.

Analyzed by: Mr. Naoto Arase，Independent Analyst