JPY: Consolidation Mode

TRY/JPY has held a relatively tight range and last sits at Y13.6690, consolidating in the wake of recent price swings. Implied volatilities remain elevated, but sit way off recent highs. As a reminder, TRY is the most popular carry-trade currency among Japanese retail investors.

• Turkish Pres Erdogan spoke to the AKP party congress, which almost unanimously re-elected him as party leader. The President reiterated his view that Turkey needs a new constitution, noting that its text will be finalised and presented for discussion next year.
• Erdogan urged Turkish citizens to "invest foreign currency and gold kept at home (...) in various financial instruments," adding that financial institutions complying with Islamic tenets deliver favourable returns.
• Anadolu reported that during a meeting with commercial lenders, CBRT Gov Kavcioglu pledged to stick to the existing single interest-rate framework.
• Should bears manage to force a break under Y13.4801, they could take aim at Mar 22 low of Y12.7984. Bulls look for a move through the 100-DMA/round figure at Y13.9950/14.0000 before targeting Mar 22 high of Y14.1290.
• Turkish data docket features real sector confidence comes, due Friday.