March 20, 2024 15:37 GMT
ZAR/JPY Breaks Through 8.00 Handle Ahead of FOMC
ZAR
South African rand outperformance and sustained weakness in the Japanese Yen has seen ZAR/JPY break through the 8.00 handle, the highest level for the cross since November 21. Price action extends the post BoJ bounce off Tuesday's low to around 2.5% and will be monitored closely as we approach tonight Fed decision, given the Yen’s ongoing sensitivity to movement in US yields.
- Furthermore, USD/JPY has significantly narrowed the gap with multi-decade highs, and a major resistance zone at 151.91/151.95. Any hawkish interpretation of the summary of economic projections, or hawkish remarks during the press conference, could pose an imminent threat to this important inflection point being tested, potentially signalling scope for further upside momentum in ZAR/JPY. This would place immediate focus on 8.3370, the November 16 high.
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