MNI BRIEF: Trump Likely To Let Powell Serve Full Term-Moore

MNI BRIEF: Canada Household Debt Tops $3 Trillion In 3Q

MNI BRIEF: Trump Likely To Allow Powell To Serve Term - Moore

MNI INTERVIEW2: Poland To Push For EU Defence Fund

MNI BRIEF: China To Keep Stabilising Housing Market - CEWC

MNI BRIEF: China Focus On Boosting Consumption In 2025

EZ/UK Bond Supply Calendar: Belgium ORI Facility on Friday

US EIA:NAT GAS STORAGE -190 BCF TO 3,747 BCF DEC 06 WK

MNI: US JOBLESS CLAIMS +17K TO 242K IN DEC 07 WK

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

JPY: USD/JPY Above 149.00 On Higher US Yields, PPI Out Today

JPY
BulletMarketsForeign Exchange Bullets

Yen lost 0.74% for Wednesday's session, leaving USD/JPY in the 149.20/25 region in latest dealings. Late US session highs from Wednesday trade were at 149.36. Yen was the second worst performer in the G10 space behind NZD for the session. Broader USD index gains continued with the BBDXY up a further 0.41%. 

  • For USD/JPY, we are close to the Aug 15 high, at 149.39, which is also the reversal trigger. A move above this level would strengthen the bullish outlook. 150.76 is the 50% retracement of the Jul 3-Sep 16 bear leg. The 20-day EMA is back at 145.26 on the downside.
  • The yen was once again sensitive to US yield shifts, with Tsy benchmark yields 5-7bps higher. Wednesday's FOMC minutes showed "some" voting members failed to sway the 50bp cut majority at the September policy meeting, while comments from the Fed's Logan were also supportive of the yield backdrop.
  • For US-JP yield differentials we have surged since the start of October. Front end 2yr spreads are now +40bps since start of the month, as the Fed/US economic outlook has been reappraised.
  • Locally, on the data front today we have the Sep PPI, (market expects +2.3%y/y, versus 2.5% prior). Weekly investment flows are also due, while Sep back lending figures and Tokyo office vacancies are out.
  • Also note, BoJ Deputy Governor Ryozo Himino speaks at Bloomberg event in Tokyo at 4:35pm. 
231 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Yen lost 0.74% for Wednesday's session, leaving USD/JPY in the 149.20/25 region in latest dealings. Late US session highs from Wednesday trade were at 149.36. Yen was the second worst performer in the G10 space behind NZD for the session. Broader USD index gains continued with the BBDXY up a further 0.41%. 

  • For USD/JPY, we are close to the Aug 15 high, at 149.39, which is also the reversal trigger. A move above this level would strengthen the bullish outlook. 150.76 is the 50% retracement of the Jul 3-Sep 16 bear leg. The 20-day EMA is back at 145.26 on the downside.
  • The yen was once again sensitive to US yield shifts, with Tsy benchmark yields 5-7bps higher. Wednesday's FOMC minutes showed "some" voting members failed to sway the 50bp cut majority at the September policy meeting, while comments from the Fed's Logan were also supportive of the yield backdrop.
  • For US-JP yield differentials we have surged since the start of October. Front end 2yr spreads are now +40bps since start of the month, as the Fed/US economic outlook has been reappraised.
  • Locally, on the data front today we have the Sep PPI, (market expects +2.3%y/y, versus 2.5% prior). Weekly investment flows are also due, while Sep back lending figures and Tokyo office vacancies are out.
  • Also note, BoJ Deputy Governor Ryozo Himino speaks at Bloomberg event in Tokyo at 4:35pm.