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JPY: USD/JPY Back Sub 151.00 On US Data Misses, BoJ Speak Today

JPY

USD/JPY tracks near 150.50/55 in early Thursday dealings. We lost around 0.65% for Wednesday’s session. Intra-session highs in the pair came in at 151.23, before weaker US data pared gains. Dips back to 150.00 were supported though.

• Wednesday’s rebound took us close to the 50-day EMA (151.30), while we currently track near the 100-day at 150.80. Lows this week rest at 148.65.
• Yesterday’s rebound in USD/JPY was assisted by lower JGB yields. Our policy team in Tokyo noted that political reaction to rate hikes is making senior BoJ officials tending to normalising policy more slowly. This narrative also assisted higher USD/JPY levels.
• Still, until we clear the 50 & 20-day EMAs on the topside, the recent rebound will be considered corrective from a short term technical standpoint.
• Lower US yields aided the modest yen recovery through Wednesday trade, amid data misses from the ADP and ISM services print. Fed Chair Powell sounded cautious though around the rate outlook, but Fed easing expectations for 2025 still firmed.
• On the data front today we have weekly investment flows.
• We also have BoJ board member Nakamura speaking today at 10:30am local time in Hiroshima.
• In the option expiry space note the following for NY cut later: Y150.00($731mln).

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