Yen Strengthens Amid Speculation of BoJ Policy Shift and Business Sector's Currency Concerns
| Action Insight Daily Report 11-28-23 |
Yen Strengthens Amid Speculation of BoJ Policy Shift and Business Sector's Currency Concerns |
Yen has a notable bounce in Asian session today, fueled by a Nikkei report suggesting that BoJ is finally near to the end its negative interest rate policy. This policy shift, which could see interest rates rise as early as the first half of next year, hinges on the outcomes of spring labor-management negotiations and consumer spending development. Such a move, if realized, would mark a major shift in monetary policy, being the first interest rate hike in 17 years. Nikkei report indeed aligns closely with BoJ's existing communication, where a wage-price spiral is considered a prerequisite for any rate hike. While BoJ has not specified a timeline, the timing of spring wage negotiations make the first half of 2024 a plausible period for this policy change... |
USD/JPY Daily Outlook Daily Pivots: (S1) 148.26; (P) 148.97; (R1) 149.40; More... USD/JPY's break of 148.57 minor support indicates rejection by 55 4H EMA. Intraday bias is back on the downside to extend the decline from 151.9. Next target is 147.14 support. Further break of 61.8% projection of 151.89 to 147.14 from 149.66 at 146.72will pave the way to 100% projection at 149.91, which is close to 145.06 key resistance turned support. For now, risk will stay on the downside as long as 149.66 resistance holds, in case of recovery. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 00:01 | GBP | BRC Shop Price Index Y/Y Oct | 4.30% | 5.20% | | 00:30 | AUD | Retail Sales M/M Oct | -0.20% | 0.10% | 0.90% | | 07:00 | EUR | Germany Gfk Consumer Confidence Dec | -28.5 | -28.1 | | 09:00 | EUR | Eurozone M3 Money Supply Y/Y Oct | -0.90% | -1.20% | | 14:00 | USD | S&P/Case-Shiller Home Price Indices Y/Y Sep | 4.20% | 2.20% | | 14:00 | USD | Housing Price Index M/M Sep | 0.40% | 0.60% | | 15:00 | USD | Consumer Confidence Nov | 101 | 102.6 |
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