JPY Atop G10 FX Pile, Tokyo Fix Demand Builds On Early Bid

Some Tokyo fix-related demand seems to have become for apparent for JPY, pushing USD/JPY to session lows of Y138.86, before a bit of a bounce back to prevailing levels of Y139.00.

• The COVID-related unrest in China flagged elsewhere has supported the JPY in early FX trade, leaving it atop the G10 FX pile.
• Weekend headline flow out of Japan wasn’t a market mover for JPY. BoJ Deputy Governor Amamiya addressed climate financing matters. Elsewhere, PM Kishida’s approval rating continued to crater in a couple of major opinions polls, while the Yomiuri reported that the Japanese government is set to draft a five-year defence spending plan that will total more than Y40tn.
• Technically, the picture hasn’t changed vs. the backend of last week. Short-term trend conditions in remain bearish. The reversal from Tuesday’s high of Y142.25 signals the end of the corrective bounce between Nov 15-22. Attention is on the bear trigger at Y137.68, the Nov 15 low where a break would confirm a resumption of the downtrend and open Y137.37, the Aug 29 low. Key short-term resistance is seen at Y142.25.