The yen is on fire

Japanese yen is surging.
The currency is up by 1.3% at 99.91 per dollar as of 7:14 a.m. ET.

The yen’s strengthening comes as the dollar continues getting smoked. The US dollar index is down by 0.9% at 94.74.

“This is in important psychological area, though the Brexit low was almost JPY99.00,” noted Marc Chandler, the global head of currency strategy at Brown Brothers Harriman, in commentary.

“The JPY100 level also may be a neckline to a possible head and shoulder pattern, which could be an unusual but not unprecedented continuation pattern rather than a more traditional reversal pattern,” he continued. “The pattern is about JPY7.5, which translates into a measuring objective of near JPY92.50 if the neckline is successfully violated.”

As for the rest of the world, here’s the scoreboard as of 7:24 a.m. ET:

  • The euro is stronger by 1.0% at 1.1296 against the dollar. Earlier, German investor confidence rose to 0.5 in August, up from the -6.8 print that was recorded shortly after the UK’s vote to leave the European Union. “Political risks within and outside the European Union, however, continue to inhibit a more optimistic economic outlook for Germany. Furthermore, uncertainty about the resilience of the EU banking sector persists,” ZEW president Achim Wambach said.
  • The British pound is stronger by 0.8% at 1.2993 against the dollar. Earlier, the Office for National Statistics reported that the consumer price index ticked up 0.6% year-over-year in July, slightly higher from June’s 0.5%.
  • The Russian ruble is stronger by 0.5% at 63.7439 per dollar.

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