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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 moved away from the 134.80/135.00 region post the Asia close, but couldn't get sub 134.00 in Thursday NY trade. We currently track in the 134.15/20 region, slightly below closing levels from NY. Like most other G10 pairs, the JPY benefited from the sharp pull back in US yields. Intra-day moves between USD/JPY and the US 2yr yield remain closely correlated.
- The weaker equity backdrop and lower commodity prices likely aided yen at the margin, with CHF, another traditional safe haven currency, outperforming the rest of the G10.
- For USD/JPY, the past week hasn't seen too much time sub the 134.00 level, while also note the 100-day EMA comes in around 134.05. For bulls, a re-test of the 135.00 level may be needed to renew upside interest.
- In the vol space, implied levels remain fairly low, the chart below of the 1 week, which sits close to multi-month lows. Next Friday's BoJ meeting is coming into view though.
- On the data front, the main focus today will be March CPI prints. The headline is expected at 3.2% y/y (prior 3.3%), while ex Fresh-food is forecast at 3.0% y/y (prior 3.1%), while core (ex food and energy) is expected at 3.6% y/y, (prior 3.5%).
- Also out are the preliminary April PMI prints.
Fig 1: USD/JPY 1 Week Vol Low Ahead Of The Next BoJ Meeting
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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