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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
FOREX
- Since the start of the year, G10 investors have been particularly focusing on the Japanese Yen as the dovish BoJ comments last month has led to a sharp depreciation in JPY in recent weeks.
- Momentum traders have become increasingly short the JPY on the back of monetary policy divergence between BoJ and DM and some EM central banks.
- Despite the upward revision in inflation, the BoJ is unlikely to change the course of its policy in the near to medium term.
- In addition, the BoJ offered on Wednesday to conduct an unlimited purchase of JGBs at a fixed rate in the coming week to prevent the 10Y yield from rising above the 0.25% level.
- The Japanese Yen is the weakest performing currency in 2022, down over 11% against the US Dollar, with USDJPY currently trading at its highest level since April 2002.
- This chart shows that momentum on CNYJPY has also been strong in the past two months despite PBoC announcing clear easing signals.
- The pair is up nearly 40% in the past two years and is approaching its key resistance at 20.2850 (June 2015 high).
- A break above that level would bring us early 1993 highs.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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