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JPY: USD/JPY Breaks Back Above 150, CPI Shortly

JPY
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  • USD/JPY has broken back above 150.00, with the USD firming following stronger-than-expected US retail sales data and below consensus initial jobless claims. The recent break above all key moving averages, marks a bullish development that undermining the longer term bearish theme and highlights a stronger reversal. Sights are on 150.76, the 50% retracement of the Jul 3 - Sep 16 bear leg.
  • The yen's significant decline in October has sparked discussions about potential FX intervention, but the movements in the currency have remained relatively controlled and reduces the likelihood that Japan’s financial authorities will step in to support the yen, as they did in previous instances, notably in 2022 and earlier this year.
  • The key factor in past interventions has been the pace of the yen's decline rather than its absolute value. While the yen experienced its largest weekly drop in 15 years earlier this month, its average daily volatility remains below levels seen during prior interventions.
  • Today we have Natl CPI with market expectations for a drop to 2.5% for September, from 3.0% in August
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  • USD/JPY has broken back above 150.00, with the USD firming following stronger-than-expected US retail sales data and below consensus initial jobless claims. The recent break above all key moving averages, marks a bullish development that undermining the longer term bearish theme and highlights a stronger reversal. Sights are on 150.76, the 50% retracement of the Jul 3 - Sep 16 bear leg.
  • The yen's significant decline in October has sparked discussions about potential FX intervention, but the movements in the currency have remained relatively controlled and reduces the likelihood that Japan’s financial authorities will step in to support the yen, as they did in previous instances, notably in 2022 and earlier this year.
  • The key factor in past interventions has been the pace of the yen's decline rather than its absolute value. While the yen experienced its largest weekly drop in 15 years earlier this month, its average daily volatility remains below levels seen during prior interventions.
  • Today we have Natl CPI with market expectations for a drop to 2.5% for September, from 3.0% in August