Dollar-yen continues to fall in the foreign exchange market on Wednesday.

(1) Short-term sales due to the failure of the 110 yen try (※ still unable to break the 110 yen even after receiving strong US employment statistics on Friday last weekend).

(2) Long-running due to breaking below the 200-day moving average Loss cut.

(3) yen buying pressure to avoid risks against the background of weak stock prices and crude oil prices (rewinding the risk-on market price up to last week) became a heavyweight, and the dollar-yen temporarily fell to around 107.17 just before FOMC. After that, the US Federal Open Market Committee (FOMC) announced that there was no description of yield curve control (YCC), and there was a situation where it rebounded until around 107.46.

(4) zero interest rate until 2022.

(5) Fed Chairman Powell said, “No conclusion has been reached regarding whether or not to introduce YCC ” and “Continue discussions at future board meetings” (US long-term interest rate decline → dollar sales) When it became a heavyweight, the price moved to a low price of 107.00 since May 15th, and the price moved violently.

Although it rebounded slightly after closing, the upside was heavy.

Today’s expected trading range is 106.500 -107.765

Analyzed by: Mr. Naoto Arase, Head of Fintect of Goldwell Capital