Technical Analysis

USD/JPY leads the way with the Bank of Japan staying on the sidelines


The yen is struggling today after the Bank of Japan left rates unchanged and Governor Kuroda offered no hints of any change to yield curvey control. USD/JPY is up 144 pips to 147.72.

The bond market is also pressuring the pair higher with US 10-year yields up 8 bps to 4.02%, reversing most of yesterday’s move.

It’s been a volatile stretch for the yen after last week’s intervention. The decline below 145.50 was short-lived and the pair is now trying to reassert itself.

The next driver will be the US PCE report at 8: 30 am ET. Yesterday’s GDP data included lower than anticipated inflation numbers and that’s a hint that today’s PCE will be slower than anticipated, at least on the headline number.

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