September 16, 2024 16:04 GMT
JAPAN: Solid Support for USDJPY Sub 140.00, Now Approaching Overnight Highs
JAPAN
- Downside momentum for USDJPY rapidly lost steam on Monday, with moves sub-140.00 appearing to be well supported. Stronger-than-expected US Empire State manufacturing assisted the early US bounce and spot has moved steadily higher in the aftermath. At typing, we are roughly 15 pips from the overnight highs at 140.93, an area that could see some further bailing from fresh shorts.
- Price action may have been assisted by the lower volumes owing to both China and Japan being out for national holidays, especially given Fed pricing has remained unchanged since the US crossover and major equity benchmarks are a touch lower.
- Following the FOMC announcement, the BOJ will also meet Friday where an unchanged decision is expected. However, the BOJ still considers that it needs to raise the policy interest rate in a timely and gradual manner to avoid falling behind the curve and being pushed into more rapid rate hikes. Therefore, any updated guidance on how they view the evolution of the economy and prices will be eagerly awaited.
167 words