Mr. Yen, how much further can the Japanese currency drop? Last week, it took a significant hit and although the drop has not worsened this week, it will be a considerable challenge to regain a positive trend.
At the moment, USD/JPY is gradually moving above 142.00, but it will encounter some resistance from its highest point on 21 November at 142.25 before reaching 145.00. Meanwhile, EUR/JPY and GBP/JPY are performing exceptionally well. The former is currently trading at 155 levels, a record high since 2008, after surpassing 150. The latter is at 181.50, the highest it has been since 2015, and has not yet approached the 2015 high just above 195.
The bond market remains an important area to monitor in this regard, but thus far, Treasury yields have remained fairly strong following the Fed's actions, despite the fact that the dollar has not.
In other places, the value of gold is still facing difficulties as those who sell it are considering the possibility of testing the 100-day average once more. The important level of support is currently estimated to be around $1,942, which will be closely monitored in the upcoming week.
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