PRCBroker exclusive financial report exciting introduction:
■ The weakness of the US dollar is the main driving force, but the appreciation of the yen also prompted the US dollar to plummet to the 130 yen level.
■It is too early to judge that the US dollar enters a bear market, and pay attention to the changes in the yield on the US 10-year Treasury bonds.
USD/JPY 0 USD/JPY yen yesterday continued to fall to a low of 130 yen, updating the depreciation of the USD and the appreciation level of the yen in about two months. Fed is committed to curbing inflation and is accelerating the pace of rate hikes, but given the sharp decline in U.S. Treasury yields and index , it is aware that the main driver of the selling of the dollar is the U.S. recession. On the other hand, regarding the trend at the beginning of this week, due to market speculation that US House Speaker US House Speaker Nancy Pelosi visited Taiwan, the Sino-US conflict will deepen, and the market's cautious sentiment spreads to the yen being bought. The depreciation of the cross-Yen (the appreciation of the yen) also stimulated the weakening of the US dollar, which appreciated the yen.
When the balance between buying and selling is broken, the market price fluctuates significantly. Currently, we mainly focus on three market data: US 10-year Treasury bond yield, US dollar index, and Euro dollar. Judging from the obvious trend chart ", one-point equilibrium table ", the market results are very obvious. The month shall prevail, and the conversion line shall maintain a strong market above the baseline (the euro dollar is a weak euro market with the conversion line below the baseline). The conversion lines are 2.4165%, 101.556 and 1.0738 US dollars, respectively, about 5% lower than the current level. It is too early to judge that the US dollar will enter a bear market. However, if the timeline is narrowed to the weekly line, the current US 10-year Treasury yield level is below the baseline of 2.5830%, and the upper conversion line 3.0580% is fluctuating downward. With the growing color of the US economic recession, the trend of the US 10-year Treasury bond yield may be the most important clue to whether the US dollar and Japanese yen will stop depreciating.
