© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

MNI: PBOC Net Drains CNY11 Bln Via OMOs Wednesday

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS WEDS

CHINA SETS YUAN CENTRAL PARITY AT 7.1196 WEDS VS 7.1075

EZ/UK Bond Supply Calendar: UK & DE to issue, ES, FR, LT Synds

MNI: Quarter Of Emerging Economies Cut Off From Bond Market

MNI: Trade Growth Sustained Through U.S.-China Fight, IMF Says

MNI BRIEF: Trudeau Blames NIMBYs For National Housing Squeeze

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
Trending Top 5
Market News Topics

Yen Underperforms Amid Higher Yields/Further Recovery In Equities

JPY
BulletMarketsForeign Exchange NewsHomepage

USD/JPY surged late in the Asia Pac session on Tuesday, moving back above 132.00, getting close to Monday session highs (132.60/65) before finishing just sub 132.50. This is where we currently sit, with a NY session dip sub 132.00 well supported. Yen was the worst performer within the G10 space for Tuesday's session, down 0.90% (closely followed by AUD and NZD losses).

  • Key EMAs all sit higher, the closest being the 20-day near 133.94. The simple 50-day MA is close by though, around the 132.55 level.
  • As we noted yesterday, the yen was outperforming the firmer US yield backdrop and recovery in global equities. These trends extended in the EU and US sessions through Tuesday, undermining yen. The 1 month USD/JPY risk reversal has moved off recent lows, last near -1.80.
  • Still, the technical backdrop points to vulnerability in the pair, with sub 130.00 still a target. A move above the 20-day EMA is likely needed to entrench more bullish sentiment.
  • EUR/JPY rallied just over 1.30% for Tuesday's session, the pair sitting around 142.65 currently. This cross sits close to the 50-day EMA. Recent dips in this pair sub 140.00 have been supported.
  • Japan markets return from holiday today. Machine tool orders are out for Feb (final reading).
207 words

To read the full story

Why Subscribe to

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.

USD/JPY surged late in the Asia Pac session on Tuesday, moving back above 132.00, getting close to Monday session highs (132.60/65) before finishing just sub 132.50. This is where we currently sit, with a NY session dip sub 132.00 well supported. Yen was the worst performer within the G10 space for Tuesday's session, down 0.90% (closely followed by AUD and NZD losses).

  • Key EMAs all sit higher, the closest being the 20-day near 133.94. The simple 50-day MA is close by though, around the 132.55 level.
  • As we noted yesterday, the yen was outperforming the firmer US yield backdrop and recovery in global equities. These trends extended in the EU and US sessions through Tuesday, undermining yen. The 1 month USD/JPY risk reversal has moved off recent lows, last near -1.80.
  • Still, the technical backdrop points to vulnerability in the pair, with sub 130.00 still a target. A move above the 20-day EMA is likely needed to entrench more bullish sentiment.
  • EUR/JPY rallied just over 1.30% for Tuesday's session, the pair sitting around 142.65 currently. This cross sits close to the 50-day EMA. Recent dips in this pair sub 140.00 have been supported.
  • Japan markets return from holiday today. Machine tool orders are out for Feb (final reading).