Yen Slumps As BoJ Reportedly Sees Little Need To Act On YCC Now

The yen was the weakest performer in the G10 space for Friday's session. The pair got close to 142.00, before stabilising somewhat (lows on Friday were around the 139.75 region). We ended the Friday NY session in the 141.70/75 region, -1.17% weaker in yen terms for the session. We have tracked close to this region in the first part of trade today. Late in the Asia Pac session on Friday a number of news wire reports suggested there is little need to act on YCC for now. This comes ahead of the BoJ meeting this Friday.

• Technically for USD/JPY, prices have now cleared the 140.79 20-day EMA which could signal potential for further gains, bringing 142.08 into view, the 61.8% Fibonacci retracement for the early July downleg.
• Both Bloomberg (link) and Reuters cited sources in reporting that the board were leaning toward no change in approach at the coming policy meeting, countering recent building speculation that a policy switch would be imminent.
• Yomiuri reported late on Friday that the ceiling of YCC is likely to be discussed this week. The central is likely to discuss the negative effects of YCC while continuing with its monetary easing (see this link).
• Elsewhere, opinion polls show support for Kishida's cabinet slipped to 28%, down over 20pts over the last two months. PM Kishida may also reportedly reshuffle the cabinet next month.
• On the data front today we have the preliminary Jibun bank PMI prints for July, followed later on by department store sales.