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Japan Goes On Holiday After Yen Takes Hit From BoJ YCC Enforcement

JPY

USD/JPY jumped after Tokyo hours Thursday as the BoJ offered to buy an unlimited amount of 10-Year JGBs at a fixed rate of 0.25% as part of their YCC policy framework, after the official 10-year yield ceiling came under pressure. Bouts of Fed-centric market impulses drove USD/JPY thereafter, with the rate topping out just shy of Jan 4 cycle high of Y116.35. Above-forecast U.S. CPI data and hawkish comments from Fed's Bullard helped keep USD/JPY afloat.

  • The rate has added a handful of pips this morning, with Japanese markets shut in observance of a public holiday. USD/JPY sits at Y116.11, with bulls looking to clear the aforementioned Y116.34/35 levels. The next layer of resistance is provided by the 2.00 proj of Apr 23 - Jul 2 - Aug 4 2021 price swing at Y117.08. Bears look for a dip through Feb 2 low of Y114.16 towards Jan 24 low of Y113.47.
  • Japanese flash GDP & final industrial output (Tuesday), trade balance & core machine orders (Thursday) as well as national CPI (Friday).

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