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JPY: USD/JPY Hits Fresh Lows Ahead Of FOMC & BoJ This Week

JPY
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USD/JPY is slightly lower this morning trading at 140.65, just off the Friday lows of 140.28. The yen has been supported by speculation of a 50bps rate cut from the Fed, with an article the WSJ and comments from Ex-fed Pres Dudley only further adding to speculation, while large block trades supporting 50bps cut has pushed the short-end lower. The BBDXY is trading at 1,224.94 just off the 12-month trendline at around 1,221.50. 

  • With the majority of Asia out today, which includes Japan for Respect-For-The-Aged-Day, expect a somewhat quiet session. There has been very little reaction from the market in response to what looks like another assassination attempt on Trump.
  • USDJPY bears remain in the driver’s seat and with the pair has again trading to a fresh cycle lows on Friday. The move down last week has resulted in a break of key support and the bear trigger at 141.70, the Aug 5 low. This confirms a resumption of the downtrend and maintains the price sequence of lower lows and lower highs. Sights are on 140.25, Dec 28 ‘23 low. Resistance is at 143.95, 20-day EMA.
  • Focus is turning to next Friday's BoJ decision, although a recent Bloomberg survey indicated no economists expect a hike next week, with around half surveyed seeing the next rate move in December. See this link. 
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USD/JPY is slightly lower this morning trading at 140.65, just off the Friday lows of 140.28. The yen has been supported by speculation of a 50bps rate cut from the Fed, with an article the WSJ and comments from Ex-fed Pres Dudley only further adding to speculation, while large block trades supporting 50bps cut has pushed the short-end lower. The BBDXY is trading at 1,224.94 just off the 12-month trendline at around 1,221.50. 

  • With the majority of Asia out today, which includes Japan for Respect-For-The-Aged-Day, expect a somewhat quiet session. There has been very little reaction from the market in response to what looks like another assassination attempt on Trump.
  • USDJPY bears remain in the driver’s seat and with the pair has again trading to a fresh cycle lows on Friday. The move down last week has resulted in a break of key support and the bear trigger at 141.70, the Aug 5 low. This confirms a resumption of the downtrend and maintains the price sequence of lower lows and lower highs. Sights are on 140.25, Dec 28 ‘23 low. Resistance is at 143.95, 20-day EMA.
  • Focus is turning to next Friday's BoJ decision, although a recent Bloomberg survey indicated no economists expect a hike next week, with around half surveyed seeing the next rate move in December. See this link.