Japanese Yen: Choppy trade after JPY-supportive comments – Scotiabank
Scotiabank strategists Shaun Osborne and Eric Theoret highlight the Japanese Yen (JPY) as somewhat firmer, with USD/JPY pulling back from the upper 158s on comments from BoJ Governor Ueda and PM Takaichi about close US-Japan FX contact. They describe spot as choppy, note officials may resist back-to-back hikes, and see neutral momentum with support around 157.75 and limited impetus to retest 160.
Yen firms on FX comments despite BoJ rate caution
"The JPY is somewhat firmer on the session, with gains from the upper 158 region driving an intraday rise that outpaces most of the core major currencies. Spot is choppy, however, with markets adjusting to various reports on the session."
"BoJ Governor Ueda and PM Takaichi commented on close US-Japan contact on FX, supporting the JPY rebound. However, further reporting also suggested that BoJ officials are leaning against a back-to-back interest rate increase this month."
"Neutral – Spot peaked around the 200-day MA earlier but losses are not significant enough to signal more downside risk in the USD at this point."
"Daily trend momentum is neutral, suggesting little impetus for a push higher in the USD to retest the 160 area at this point. Support is 157.75."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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