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Yen Gains Extend, 50-day EMA Not Too Far Away

JPY

USD/JPY weakness has extended, with the pair slipping to 148.64, fresh lows back to Feb 8. We have stabilized somewhat since, last near 148.70, still 0.45% stronger in yen terms.

  • The latest round of yen strength followed a BBG headline: *SOME GOVT OFFICIALS ARE SAID TO SUPPORT NEAR-TERM BOJ LIFTOFF.
  • The article didn't shed fresh light on timing around March versus April in terms of the BoJ exit from NIRP. Still, it is the latest in a round of articles/speculation on the matter, which have risen this past week.
  • Headlines from board member Nakagawa are also crossing at the moment, with wages and unconventional policy in focus. Note Japan's biggest union federation will announce the result of annual wage negotiations on March 15 (BBG). The next BoJ meeting is scheduled for March 19.
  • Later today we have Governor Ueda before parliament just after 3pm local time.
  • For USD/JPY the 50-day EMA sits back at 148.51, as the next support zone to watch. Note as well a chunky option strike at 148.25 for notional 1.13 bn (USD call, JPY put) expires on the 12th of March.
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USD/JPY weakness has extended, with the pair slipping to 148.64, fresh lows back to Feb 8. We have stabilized somewhat since, last near 148.70, still 0.45% stronger in yen terms.

  • The latest round of yen strength followed a BBG headline: *SOME GOVT OFFICIALS ARE SAID TO SUPPORT NEAR-TERM BOJ LIFTOFF.
  • The article didn't shed fresh light on timing around March versus April in terms of the BoJ exit from NIRP. Still, it is the latest in a round of articles/speculation on the matter, which have risen this past week.
  • Headlines from board member Nakagawa are also crossing at the moment, with wages and unconventional policy in focus. Note Japan's biggest union federation will announce the result of annual wage negotiations on March 15 (BBG). The next BoJ meeting is scheduled for March 19.
  • Later today we have Governor Ueda before parliament just after 3pm local time.
  • For USD/JPY the 50-day EMA sits back at 148.51, as the next support zone to watch. Note as well a chunky option strike at 148.25 for notional 1.13 bn (USD call, JPY put) expires on the 12th of March.