November 16, 2022 00:06 GMT
Yen Firms In Early Trade, Yesterday's Peak Some Way Off
USD/JPY lost altitude Tuesday, printing new two-and-a-half-month lows in the process, as the release of U.S. data inspired a knee-jerk lower.
- Greenback crosses fell across the board on the release of below-forecast U.S. PPI data, despite a better than forecast Empire Manufacturing reading. It clawed back losses promptly thereafter on reports that Russian missiles fell on a Polish village near the Ukrainian border.
- U.S./Japan yield spreads tightened Tuesday, with 2-year gap extending that move in morning Tokyo trade today.
- Equities were generally firmer in volatile trade Tuesday, with the VIX index up 3.41% come the end of play.
- Spot USD/JPY has faltered this morning and last deals at Y139.00, down 27 pips on the day. Below yesterday's trough of Y137.68 would open Aug 29 low of Y137.37. Bulls look for a rebound above the 100-DMA at Y140.87.
- Looking ahead, Japanese trade balance will cross the wires Thursday, with CPI coming up Friday.