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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.
JPY
USD/JPY sits close to 138.50 in latest dealings, modestly higher from Wednesday session lows near 138.15, which came post the US CPI print. For the session as a whole yen rose 1.34% on Wednesday, mid range from a G10 stand point (the BBDXY fell 0.94%). The better risk tone in equities and commodities lent against yen outperformance against higher beta plays, but yen sill rose more than EUR, GBP and CAD for the session.
- The pair is comfortably below the 20 and 50-day EMAs. The 100-day EMA is nearby at ~138.30. These moves signal scope for an extension towards support at 137.47, the 4.0% 10-dma envelope - not crossed since 2020. Initial firm resistance is at 140.34, the 50-day EMA.
- Interestingly, USD/JPY is not far off oversold territory, at least based off the RSI (14), see the chart below.
- The local data calendar just has weekly investment figures on tap today. These are typically not a market mover.
- Focus is likely to rest on whether Japan yield outperformance persists. A theme in recent sessions has been the move higher in Japan yields, with the 10yr swap rate finishing up at 0.675% yesterday, while the 10yr government yield ended at 0.474%. Core yields slumped in Wednesday US trade post the US CPI miss.
Fig 1: USD/JPY Spot & RSI (14)
Source: MNI - Market News/Bloomberg
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.
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