Free Trial
AUSSIE 10-YEAR TECHS

(U2) More Stable But Still Fragile

USDCAD TECHS

Trend Structure Remains Bullish

US TSYS

Cautious Risk Appetite Gains Momentum

AUDUSD TECHS

Key Support Still Exposed

US STOCKS

Late Equity Roundup: 2W Highs

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

USD/JPY On A Tear As Recent Cycle High Gives Way

JPY

Fed/BoJ policy divergence continued to fuel a rally in USD/JPY on Monday. The rate soared further as the Tokyo session high/Mar 28 high of Y125.00/125.09 gave way into the London morning, with gains eventually capped at Y125.77. The clearance of Y125.00 suggests that participants started to see potential intervention around that level as unlikely, even as Japanese officials have recently frowned upon rapid yen depreciation.

  • Yesterday's rally above Y125.00/125.09 coincided with notable upswings in implied USD/JPY volatilities across the curve, albeit it should be noted that recent cycle peaks remain intact for now.
  • Spot USD/JPY trades at Y125.51 at typing, up 13 pips on the day. A move through yesterday's/Jun 5, 2016 highs at Y125.77/125.86 would bring May 17, 2002 high of Y128.15 into view. Bears look for a pullback under Apr 6 & 7 lows at Y123.47, before targeting Mar 31 low at Y121.28.
  • In late Tokyo hours Monday the BoJ lowered its assessment on the economy in eight out of nine regions amid the wave of Covid-19 infections and supply-chain bottlenecks.
  • Japan's PPI will hit the wires later today, with core machine orders coming up Wednesday. Also on Wednesday, BoJ Gov Kuroda will speak to the Trust Companies Assembly.
197 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Fed/BoJ policy divergence continued to fuel a rally in USD/JPY on Monday. The rate soared further as the Tokyo session high/Mar 28 high of Y125.00/125.09 gave way into the London morning, with gains eventually capped at Y125.77. The clearance of Y125.00 suggests that participants started to see potential intervention around that level as unlikely, even as Japanese officials have recently frowned upon rapid yen depreciation.

  • Yesterday's rally above Y125.00/125.09 coincided with notable upswings in implied USD/JPY volatilities across the curve, albeit it should be noted that recent cycle peaks remain intact for now.
  • Spot USD/JPY trades at Y125.51 at typing, up 13 pips on the day. A move through yesterday's/Jun 5, 2016 highs at Y125.77/125.86 would bring May 17, 2002 high of Y128.15 into view. Bears look for a pullback under Apr 6 & 7 lows at Y123.47, before targeting Mar 31 low at Y121.28.
  • In late Tokyo hours Monday the BoJ lowered its assessment on the economy in eight out of nine regions amid the wave of Covid-19 infections and supply-chain bottlenecks.
  • Japan's PPI will hit the wires later today, with core machine orders coming up Wednesday. Also on Wednesday, BoJ Gov Kuroda will speak to the Trust Companies Assembly.