MNI: PBOC Net Injects CNY336.4 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Lower At 7.1881 Thurs; -2.18% Y/Y

MNI BRIEF: Bank of Korea Keeps Policy Rate At 3.00%: Press

MNI BRIEF: Economic Activity Picks Up A Bit - Fed Beige Book

MNI China Daily Summary: Wednesday, January 15

MNI BRIEF: China Sees Favourable Conditions For 2025 Trade

MNI:AUSTRALIA DEC UNEMPLOYMENT RATE +4%

MNI: JAPAN DEC CORP GOODS PRICE INDEX +3.8% Y/Y; NOV REV +3.8%

EZ/UK T-Bill Calendar: 1/3/6-Month UKTB Auction on Friday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

JPY: USD/JPY Off Highs, FinMin Warns On FX Moves, Cross Asset Trends Also Help

JPY
BulletMarketsForeign Exchange Bullets

USD/JPY has seen some degree of volatility in the first part of Friday trade. From highs of 157.93 we slipped in recent dealings to 157.15, so close to an 80pip range. We last tracked near 157.25/30, slightly up in yen terms for the session. 

  • We had fresh FX jawboning from FinMin Kato, which is not surprising given the multi month highs USD/JPY printed on Thursday/earlier today. There comments appeared to in line with usual rhetoric seen (seeing one-sided FX moves, will take action against excessive moves), but *KATO: GRAVELY CONCERNED ABOUT FX MOVES, was a little more eye-catching.
  • USD/JPY didn't react immediately, but saw greater downside post the Tokyo fix.
  • Cross asset moves have also helped the yen, with US equity futures weighed amid risks of a US government shutdown, as the latest funding measure failed to pass the House. US yields are also down a touch.
  • Still, JGB yields are also tracking lower so far today, with US-JP yield differentials mostly tracking higher, particularly for the 10yr tenor.
  • For USD/JPY, dips are still likely to be supported. Pre Ueda press conference highs in the pair were around 155.45 yesterday, while the 20-day EMA is much further south at 152.36. 
200 words

To read the full story

Close

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.

USD/JPY has seen some degree of volatility in the first part of Friday trade. From highs of 157.93 we slipped in recent dealings to 157.15, so close to an 80pip range. We last tracked near 157.25/30, slightly up in yen terms for the session. 

  • We had fresh FX jawboning from FinMin Kato, which is not surprising given the multi month highs USD/JPY printed on Thursday/earlier today. There comments appeared to in line with usual rhetoric seen (seeing one-sided FX moves, will take action against excessive moves), but *KATO: GRAVELY CONCERNED ABOUT FX MOVES, was a little more eye-catching.
  • USD/JPY didn't react immediately, but saw greater downside post the Tokyo fix.
  • Cross asset moves have also helped the yen, with US equity futures weighed amid risks of a US government shutdown, as the latest funding measure failed to pass the House. US yields are also down a touch.
  • Still, JGB yields are also tracking lower so far today, with US-JP yield differentials mostly tracking higher, particularly for the 10yr tenor.
  • For USD/JPY, dips are still likely to be supported. Pre Ueda press conference highs in the pair were around 155.45 yesterday, while the 20-day EMA is much further south at 152.36.