Yen volatility has been exacerbated over the past few weeks as geopolitical updates out of Japan have combined with fundamentals to see the currency move more than the other majors.
On the fundamental side of things, data has come in largely with expectations, and the Bank of Japan has kept rates on hold as expected. It is geopolitical, or more accurately, political, changes that have led to the greater moves. While in reality, the greatest volatility has come from official action from the Japanese authorities as they have reacted to Yen weakness. The irony, of course, is that the majority of the currency’s weakness has come from government moves – or promised moves – on the fiscal front.
USDJPY had pushed to uncomfortable levels just under the key 160.00 mark by mid-January, but had drifted lower on dollar weakness afterwards; however, after another move north in the next week prompted the jump in volatility. It was the talk of, and/or real intervention that occurred on 23 Jan – thin markets on a Friday afternoon – that saw a real reaction, taking the pair down well over 4% in the next few sessions to just above the 152.00 level.
We have seen a bit of consolidation near range lows over the last few sessions, and the pair seems to have found some support just above the 152.00 level. From an interest rate differential perspective, traders are now watching both sides of the currency equation closely for fresh moves with a particular focus on Bank of Japan rate hike expectations – some are calling for a March hike, although April looks more likely, and US data for indications on when we will see a cut from the Fed.
However, the spectre of geopolitical surprises still looms over the currency, and it is likely that this will once again cause volatility in the coming weeks rather than underlying fundamentals.
Technical Levels
Market 153.20
Resistance 2: 156.78 – Trendline Resistance
Resistance 1: 153.92 – Feb 17 High
Support 1: 152.50 – Trendline Support
Employee Appreciation on LinkedIn: The Power and Impact
- Public Appreciation Boosts Productivity & Retains Talent
- Recognising top performers makes them feel valued, creating a motivated environment where everyone strives for high performance.
- Employees are less likely to leave when they feel seen and appreciated.
- Authenticity Builds Trust and Credibility
- Personal employee stories are more authentic and humanised, compared with formal corporate posts.
- These stories can effectively build trust and credibility for the brand.
- Stronger Employer Branding=Stronger Talent Attraction
- Highlighting the work-life experiences of the top-performers strengthens the employer branding.
- Showcasing the people, culture and environment can be a powerful recruitment tool.
