Yen Pullback Persists as Sterling and Dollar Gain Ahead of Crucial Events
| Action Insight Daily Report 12-11-23 |
Yen Pullback Persists as Sterling and Dollar Gain Ahead of Crucial Events |
Yen's near-term pullback has notably accelerated today. Some reports surfaced suggesting that the BoJ is not poised to abandon its negative rate policy anytime soon, with the earliest potential shift expected no sooner than April meeting. This stance isn't fundamentally new, as BoJ has consistently indicated that it requires time to assess Spring's wage negotiations before considering any policy changes. Additionally, the timing of the new economic projections aligns with April meeting, making it an opportune moment for the bank to explain any significant policy shifts. Despite this, the resilience seen in 10-year JGB yields indicates that traders are still hopeful for a minor policy adjustment, particularly concerning the yield curve control, later this month. |
USD/JPY Mid-Day Outlook Daily Pivots: (S1) 143.18; (P) 144.20; (R1) 145.89; More... While USD/JPY's rebound from 141.59 is strong, outlook is unchanged for the moment. Upside should be limited be 147.14 support turned resistance. On the downside, below 144.80 minor support will turn bias to the downside for retesting 141.59. Break of 141.59 and sustained trading below 142.45 fibonacci level will pave the way to next fibonacci level at 136.63. However, firm break 147.14 will dampen the bearish view, and bring stronger rally to 149.56 resistance and above. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | BSI Large Manufacturing Index Q4 | 5.7 | 5.6 | 5.4 | | 23:50 | JPY | Money Supply M2+CD Y/Y Nov | 2.30% | 2.50% | 2.40% | | 06:00 | JPY | Machine Tool Orders Y/Y Nov P | -13.60% | -20.60% |
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