Free Trial

Yen Underperforms As Risk Appetite Improves

JPY

Yen lagged the broader USD sell off for Monday's session. The currency finished close to flat versus Friday closing levels from last week, despite a 0.35% pull back in the BBDXY. Dips towards 149.40 were supported, post the Asia close, while a brief move above 149.75 drew selling interest. We currently track near 149.50.

  • The technical set up hasn't changed for USD/JPY, with resistance/intervention threats still likely above the 150.00 level. The 20-day EMA sits back at 148.74, but key support is seen at 147.43, the October 3 low.
  • One drag on the yen was the better tone in global equities, with the SPX up over 1%, amid a firmer risk backdrop. AUD/JPY pushed back above 94.80 against recent lows near 94.00.
  • Focus remains on preventing the Israel/Hamas conflict from escalating through continued diplomatic efforts.
  • US yields rose, with the 10yr back above 4.70%, but below recent highs near 4.90%. US data was slightly better than forecast (Empire manufacturing), while Fed speak saw Harker state the central bank should not be thinking about rate hikes now.
  • On the data front today we have the Aug tertiary industry index (+0.3% m/m forecast against 0.9% prior).

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.