Japanese Yen: Yen eyes BoJ and key resistance zone against US Dollar – Scotiabank
Scotiabank strategists Shaun Osborne and Eric Theoret observe the Japanese Yen trading broadly in line with G10 peers, with near-term focus on the June PPI release and the July 31 Bank of Japan meeting. They note material resistance in USD/JPY above 162.50, close to last week’s multi-decade high, while markets still price only about 25 bps of BoJ tightening by year-end.
Resistance near multi-decade highs
"The yen is also trading in tandem with most of its G10 peers and offering little differentiation in terms of its performance."
"Overnight data were limited and near-term risk lies with the 7:50pm ET release of PPI."
"Short-term price action in USD/JPY suggests material resistance above 162.50, with all eyes on last week’s multi-decade high around 162.80."
"Media reports of an acceleration in the BoJ’s tightening path may offer the JPY support, however rate expectations remain relatively muted into the July 31 rate decision with markets still pricing only about 25bpts of tightening by year-end."
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