May 27, 2024 21:42 GMT
Holding Beneath 157.00, But Yen Underperforms Broader USD Weakness
JPY
USD/JPY largely tracked sideways post the Asia close on Monday, with markets impacted by the UK Spring Bank holiday and the Memorial day holiday in the US. The pair tracks near 156.90 in early Tuesday dealings, after recording a modest gain in yen terms for Monday's session.
- Broader ranges in the pair remain intact, albeit holding close to recent highs. Highs from last week rest at 157.20, while the 20-day EMA continues to trend higher, last near155.81. The 50-day is back around 154.14.
- In the cross asset space, equity sentiment was mostly positive for those markets which were open, while US Tsy futures largely drifted sideways. Yen was the weakest performer in the G10 space, as the bloc moved higher against the USD through Monday trade.
- Today on the data front we have the PPI services print for April. The market expects +2.3%y/y, versus the prior 2.3% outcome.
- Remarks yesterday from BoJ Governor Ueda and the Deputy Governor hint at further policy normalization, but in a gradual/cautious manner (see this BBG link).
170 words