Japanese Yen: Defensive Yen as BoJ turns hawkish – Scotiabank
Scotiabank strategists Shaun Osborne and Eric Theoret highlight that USD/JPY is edging higher as the Japanese Yen trades defensively after its sharp late-August rally. The Bank of Japan’s messaging is described as unequivocally hawkish ahead of a widely anticipated 25 bps hike on September 18. For USD/JPY, they now see support around 153 and short-term resistance above 155.
Yen softens with BoJ tightening priced
"The yen is down fractionally vs. the USD and trading somewhat defensively into Thursday’s NA session, showing its first notable signs of weakness since the shock 3.7% rally from August 31."
"The release calendar has been limited, and focus has remained centered on the BoJ with messaging leaning unequivocally hawkish into the September 18 meeting where a 25bpt rate hike is widely anticipated and almost fully priced."
"For USD/JPY, we had highlighted the importance of support closer to 152 but this week’s price action leans toward support around 153."
"We see short-term resistance above 155."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
Nothing in this material constitutes investment advice, personal recommendation, investment research, an offer, or a solicitation to buy or sell any financial instrument. The content has been prepared without consideration of your individual investment objectives, financial situation, or needs, and should not be treated as such.
Past performance is not a reliable indicator of future performance and/or results. Forward-looking scenarios or forecasts are not a guarantee of future performance. Actual results may differ materially from those anticipated.
Mitrade makes no representation or warranty as to the accuracy or completeness of the information provided and accepts no liability for any loss arising from reliance on such information.
Recommended Articles
