USD/JPY continued to trade greater post-parliament vote however the relocation higher was likewise driven by the broad rebound in USD, rather of simply policy unpredictability. Set was last at 152.59 levels, OCBC’s FX experts Frances Cheung and Christopher Wong note.
Daily momentum is disappointing a clear predisposition
” New Minister of Financing Katayama had actually formerly revealed issues about the weak JPY. In an earlier interview in March, she stated that the JPY needs to have to do with 120-130. She likewise drifted the concept of offering tax rewards for people to buy domestic equities instead of abroad.”
” Our company believe if financial vigilance is pursued, then the brand-new federal government needs to be assuring for markets and JPY. This relocation in USD/JPY is likely more driven by USD leg. Provided some political clearness, we still see space for BoJ to trek on 30 Oct as macro conditions enable policy normalisation.”
” Daily momentum is disappointing a clear predisposition though RSI increased. Small threat to the benefit in the interim. Resistance here at 153.40 levels. Assistance at 151.90 (23.6% fibo retracement of the run-up), 150.35/ 50 levels (50% fibo, 21 DMA).”
Source: FXstreet.
