USDJPY Insight

Oct 29

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Key Points
- Japan's ruling Liberal Democratic Party and its coalition partner Komeito failed to secure a majority in the general election, making it unlikely for the BoJ's policy normalization.
- U.S. Treasury’s recent 2-year and 5-year bond auctions saw weak demand.
- On the 26th, Israel launched a retaliatory strike in response to Iran's ballistic missile attack, sparing nuclear and oil facilities.
- The Federal Reserve has entered its blackout period.
- Former President Trump’s rising support in the presidential race is increasing his election prospects.

Major Economic Indicators
- October 29: U.S. Department of Labor's September JOLTS report
- October 30: U.S. Q3 GDP data
- October 31: Bank of Japan’s interest rate decision, Eurozone’s October CPI, and U.S. September PCE inflation
- November 1: U.S. October unemployment rate and nonfarm payrolls

USDJPY Chart Analysis
Due to recent yen depreciation factors and dollar appreciation, USDJPY has surged significantly. The pair is currently in a V-shaped rebound, forming above the 153 level. Having recently broken through the 152 resistance, the pair now has potential to rise toward the 158 area. Further gains in USDJPY are anticipated.

If unexpected downward movement occurs, I will quickly adjust the strategy.