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USDJPY Printing Fresh 11-Week Highs

JPY
  • Depressed equity indices on the back of the hawkish rhetoric from Fed’s Powell have prompted some relative resilience from the Japanese Yen on Tuesday. However, USDJPY is currently piercing through last Thursday’s high of 137.09, placing the pair at a fresh 11-week high.
  • USDJPY is currently up 0.85% on Tuesday and the price action cements the near-term bullish outlook for the pair. The clear break of 136.67, 38.2% retracement of the downleg between Oct 21 and Jan 16, signals scope for a move towards 138.17, the Dec 15 high.
  • Price action comes ahead of Friday’s BOJ meeting. Bank of Japan officials will not risk any policy changes to address ongoing bond market distortions at the last meeting under Governor Haruhiko Kuroda, though they are vigilant against the threat of bond market volatility amid the change of leadership in April, MNI understands.
  • The full MNI preview with sell-side views for this meeting will be published tomorrow.

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