Free Trial
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.
JPY
Yen underperformed through Monday's session, falling 1.2% against the USD to be the worst performer within the G10 space. The pair sits back above 142.00, which is fresh highs back to November 11. Continued upward momentum in US yields through the US session (2yr back to 4.55%) amid continued hawkish Fedspeak, supported broader USD sentiment.
- Highs from November 11 sit around 142.50, then the 50-day EMA comes in at 143.61. On the downside, the low after the initial break through 142.00 came in around 141.30. The 100-day EMA also comes in at 140.80.
- USD/JPY has realigned itself somewhat with US-JP yield differentials. The 2yr spread is back close to +457bps (versus recent lows around +438bps), see the chart below. The 10yr spread is less supportive from a USD, but still pointing to higher USD/JPY levels. This spread is back to +358bps, against recent lows of +344bps, while recent highs were close to +400bps.
- The 1 month risk reversal is close to -0.53, not too far off month to date highs. The 1 month implied vol has edged up as well, last just above 13%, but it remains well within recent ranges.
- The local data calendar is quiet today.
Fig 1: USD/JPY Versus US_JP 2yr Spread
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok