USD/JPY
is currently trading at 123.21 with a high of 123.24 and a low of
123.14. The major unit is supported in the opening hour of Tokyo in an
exceptionally quiet start to what looks to be a non eventful week ahead.
The focus left for the month stays with the FOMC and Fed interest rate
decision while the greenback was supported on the jobs data, moving back
onto the 123 handle against the Yen from lows of 122.29 post ECB.
We have Bank of Japan governor Kuroda speaking although it is highly unlikely that we will hear anything different than downside risks exist but the underlying inflation in the Japanese economy is moving higher and hence no action is required. The driver in the major comes in the slightly firmer close in the dollar while analysts at Brown Brothers Harriman explained that they suspect that the slippage in the 10-year bond differential and an upward revision to Q3 GDP estimates (from a small contraction to a small expansion) may help reinforce the ceiling.
The analysts went on to explain the recent price action in USD/JPY remains within the MA's. "From late-August through earl-November, the dollar was confined to a JPY118.00-JPY122.00 range. After testing the lows in late October, the dollar began to trend higher. First to the upper end of the range and through that. It has entered into a new trading range over the past month: JPY122.00-JPY124.00."
We have Bank of Japan governor Kuroda speaking although it is highly unlikely that we will hear anything different than downside risks exist but the underlying inflation in the Japanese economy is moving higher and hence no action is required. The driver in the major comes in the slightly firmer close in the dollar while analysts at Brown Brothers Harriman explained that they suspect that the slippage in the 10-year bond differential and an upward revision to Q3 GDP estimates (from a small contraction to a small expansion) may help reinforce the ceiling.
The analysts went on to explain the recent price action in USD/JPY remains within the MA's. "From late-August through earl-November, the dollar was confined to a JPY118.00-JPY122.00 range. After testing the lows in late October, the dollar began to trend higher. First to the upper end of the range and through that. It has entered into a new trading range over the past month: JPY122.00-JPY124.00."
