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Japanese Yen in Focus Ahead of US CPI

FOREX
BulletMarketsForeign Exchange BulletsHomepageBank of Japan (BOJ) Market News
  • The yen’s sensitivity to major US data points has remained a key theme for global markets in recent months, however, USDJPY’s proximity to multi-decade resistance and the potential threat of MOF intervention is placing the Yen’s tradability into question at current levels.
  • This is well highlighted by the extremely tight trading range this week, with the pair broadly respecting a 151.75-95 range.
  • Furthermore, overnight straddle pricing, which incorporates tomorrow’s US inflation data, rests around 70 pips, notably subdued for USDJPY specifically relative to the rest of G10.
  • We highlight some key topside levels for USDJPY and the crosses ahead of the release and the potential downside targets should market sentiment prompt a yen recovery:

    • FX Market Analysis - JPY 09-04.pdf

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  • The yen’s sensitivity to major US data points has remained a key theme for global markets in recent months, however, USDJPY’s proximity to multi-decade resistance and the potential threat of MOF intervention is placing the Yen’s tradability into question at current levels.
  • This is well highlighted by the extremely tight trading range this week, with the pair broadly respecting a 151.75-95 range.
  • Furthermore, overnight straddle pricing, which incorporates tomorrow’s US inflation data, rests around 70 pips, notably subdued for USDJPY specifically relative to the rest of G10.
  • We highlight some key topside levels for USDJPY and the crosses ahead of the release and the potential downside targets should market sentiment prompt a yen recovery:

    • FX Market Analysis - JPY 09-04.pdf