MNI BRIEF: Canadians Fuzzy On How BOC Hikes Slow CPI, Government's Role

CANADA FLASH MAY GDP +0.1% ON FACTORIES AND REAL ESTATE

MNI China Daily Summary: Friday, June 28

MNI BRIEF: BCB Evaluating Real Depreciation Impacts - Galipolo

MNI BRIEF: PBOC Pledges to Curb Any Overshoot Of The Yuan: MPC

MNI: PBOC Net Injects CNY40 Bln Via OMO Fri; Rates Unchanged

MNI: BAKER HUGHES US RIG COUNT 581; OIL RIGS 479; GAS RIGS 97

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

EZ/UK Bond Supply Calendar: BoE APF on Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

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

USD/JPY Back below 158.00, Core Machine Orders Shortly

JPY
Homepagemarkets-real-timeBulletMarketsBank of Japan (BOJ) Market NewsForeign Exchange Bullets

USD/JPY ended Friday trading up 0.24% at 157.40 after the BoJ kept rates unchanged, leading to a weaker Yen. The pair saw gains driven by risk aversion and a hawkish hold by the US Fed earlier in the week. The USD/JPY stabilized around 157.36, recovering from intraday lows and reflecting a positive market sentiment towards the Greenback.

  • The USD/JPY climbed past 157.00 and tested the 158.00 resistance but failed to maintain its gains above this level. Immediate resistance remains at 158.25 (Jun 14 high), followed by 158.48 (1.00 proj of the May 3 - 14 - 16 price swing), with support at 156.60 (20-day EMA) and 155.72 (June 12 low).
  • The pair's bullish momentum is underscored by the RSI at 58 has held steady recently, though it indicates a potential loss of steam. The Ichimoku Cloud low at 153.35/40 serves as a significant support level if the pair moves downward.
  • S&P view the current weakness in the yen as temporary and do not expected it to negatively impact Japan's sovereign credit rating in the near future, with any potential rate hikes by the BoJ being assessed based on their effect on economic growth, as per BBG.
  • Today, the USD/JPY has ticked slightly higher and now trades around 157.50, largely reflecting wider moves in the USD, the pair trades well within Friday ranges of 157.00-158.25. Up soon we have Core Machine Orders For April.
  • Expiries: 150.00 ($3.12b), 157.50 ($770.9m), 95.99 ($763m). Upcoming notable strikes: 135.50 ($1.97b June 20), 154.00 ($1.95b June 18), 157.00 ($1.8b June 20)

Investors will watch for upcoming Japanese trade and inflation data, which may impact future movements. The BoJ’s detailed plan for bond purchases, expected in July, and the ongoing US economic data will also influence the USD/JPY pair in the coming days.

290 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.

USD/JPY ended Friday trading up 0.24% at 157.40 after the BoJ kept rates unchanged, leading to a weaker Yen. The pair saw gains driven by risk aversion and a hawkish hold by the US Fed earlier in the week. The USD/JPY stabilized around 157.36, recovering from intraday lows and reflecting a positive market sentiment towards the Greenback.

  • The USD/JPY climbed past 157.00 and tested the 158.00 resistance but failed to maintain its gains above this level. Immediate resistance remains at 158.25 (Jun 14 high), followed by 158.48 (1.00 proj of the May 3 - 14 - 16 price swing), with support at 156.60 (20-day EMA) and 155.72 (June 12 low).
  • The pair's bullish momentum is underscored by the RSI at 58 has held steady recently, though it indicates a potential loss of steam. The Ichimoku Cloud low at 153.35/40 serves as a significant support level if the pair moves downward.
  • S&P view the current weakness in the yen as temporary and do not expected it to negatively impact Japan's sovereign credit rating in the near future, with any potential rate hikes by the BoJ being assessed based on their effect on economic growth, as per BBG.
  • Today, the USD/JPY has ticked slightly higher and now trades around 157.50, largely reflecting wider moves in the USD, the pair trades well within Friday ranges of 157.00-158.25. Up soon we have Core Machine Orders For April.
  • Expiries: 150.00 ($3.12b), 157.50 ($770.9m), 95.99 ($763m). Upcoming notable strikes: 135.50 ($1.97b June 20), 154.00 ($1.95b June 18), 157.00 ($1.8b June 20)

Investors will watch for upcoming Japanese trade and inflation data, which may impact future movements. The BoJ’s detailed plan for bond purchases, expected in July, and the ongoing US economic data will also influence the USD/JPY pair in the coming days.