Free Trial

Yen Lags Behind G10 Peers, Politics & BoJ Eyed This Week

JPY

USD/JPY started the week marginally higher and still sits +11 pips at Y113.61 in a mixed early part of the Asia-Pac session. The Nikkei 225 futures point to a slightly lower reopen.

  • Bulls would be pleased by a rally above Oct 20, 2021/Nov 6, 2017 highs of Y114.70/114.73, which would shift focus to Mar 10, 2017 high of Y115.51. On the flip side, losses past Oct 12 low of Y113.00 would expose Sep 30 high of Y112.08, a recent breakout level. Worth noting that the RSI has now crossed below the 70 threshold, returning from overbought territory.
  • Political themes are set to gain more prominence this week, as campaigning for Sunday's general election enters the final stretch. While PM Kishida has effectively shelved the market-sensitive capital gains hike proposal, but any hints on the size and details of his stimulus package would provide interest.
  • The ruling LDP unexpectedly lost a House of Councillors by-election in Shizuoka prefecture, one of two races held over the weekend. Nonetheless, the LDP and its junior coalition partner Komeito are still expected to win at least a simple majority in the election to the House of Representatives on Oct 31.
  • The BoJ convene this week, but won't deliver their monetary policy decision until Thursday. Data highlights include retail sales (Thursday) as well as Tokyo CPI, unemployment & flash industrial output (Friday).

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.