USDJPY breakdown deepens ahead of Dec BoJ meeting
USDJPY finished lower overnight at 149.56 (-0.11%) its lowest daily close in over six weeks. The rebound in the JPY is being supported by increased expectations of a 25bp rate hike at the BoJ’s Dec meeting following a strong rise last week in the Tokyo core rate of inflation (2.2% in November, up from 1.8% in October) and after BoJ Governor Ueda said over the weekend “we are closer to the next hike”.
Providing USD/JPY remains below the 151/152 resistance zone, the risks are for a deeper decline towards 145.00, which may prove too conservative if the BOJ hikes rates and the Fed cut rates on December 19th.
Providing USD/JPY remains below the 151/152 resistance zone, the risks are for a deeper decline towards 145.00, which may prove too conservative if the BOJ hikes rates and the Fed cut rates on December 19th.
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