The Japanese Yen literally collapsed today to levels above 160 Yen to the dollar. The Bank of Japan had no choice but to intervene in the market. And the bank actually acts with a strong intervention towards the end of the Asian session. The yen had reached as high as 160.32 (USDJPY), after which strong intervention by the central bank lowered the rate to 155-157 levels. The last USDJPY levels of 160.00 and above were back in 1986. The yen has been in a constant process of depreciation for the past 12 years, and this trend has intensified after the beginning of 2022. Despite the strong support for the yen from the Bank of Japan, a few hours later the yen already lost about 180 pips. World-Signals.com expects the yen to continue depreciating regardless of central bank support. Levels of 160 yen to the dollar are realistic for the beginning and middle of May.

Good data for Germany and later for the Eurozone moved the market during the morning European session. The data helped the Euro take a 50-pips lead against the Dollar, but that lead later narrowed to around 25 pips. Investors tend to use data from the United States instead of the Eurozone, so they await today's important data on the S&P Global Manufacturing PMI for April and the S&P Global Services PMI also for April. In general, World-Signals.com expects a stop in the growth of the Dollar at the levels of 1.06 (EURUSD) and a smooth movement upwards to 1.08 in the coming days.

The dollar remains steady against the Euro this week. But the same cannot be said for oil and the price of gold. The dollar continues to lose against the precious metal, which is setting new records day after day. And oil is about to reach $100 levels, as Russia has promised after becoming the real OPEC+ leading country. Since both economies on both sides of the Atlantic are sufficiently vulnerable to contemporary challenges, the dollar and euro will continue to weaken, respectively. What is seen from technical analysis is that Euro/Dollar will continue in the 1.0770 - 1.0870 consolidation for about a week, after which we expect a break out of these levels. World-Signals.com recommends a narrow trade at the levels around 1.08 with target exits up to 40 pips from the opening point.