USD/JPY higher still with US rates after Powell-speak
USD/JPY higher still yesterday alongside US rates after Powell-speak
The FOMC Chair said there was no need to rush rate cuts with economy strong
US yields perked up on the news, Treasury 2s to 4.370%, 10s to 4.483%
Yields tad lower since with Powell merely confirming some market views
That said, US now likely to remain high and reason for USD strength
USD/JPY 155.33 to 156.41 yesterday, Asia so far today 156.23-45 EBS
Resistance topside between 157.00-10 with 157.09 high dating back to July 23
More daily highs above on 157, more tests higher likely
Spot now well clear of 148.74-152.89 weekly Ichi cloud
No major nearby option expiries today/Monday, talk of upside barriers though
Japanese importer/spec bids on dips, tech support from 156.06 hourly tenkan
Broad USD strength on Trump, Fed making any real FX intervention unlikely
Japan's MOF will likely pick its moment for greatest impact
Possibly in conjunction with a BOJ rate hike in December, on more USD longs
Related comments nL1N3ML0X0, nL1N3ML0NN, nL1N3ML0I8, nL1N3ML0DU
And nL1N3ML0AO, nL6N3ML0E9, nL8N3K60E9, also nL1N3ML12O
Comments on BOJ nL1N3MK07T, nL1N3ML0MP, Japan intervention nL1N3ME031
US markets nL1N3ML123, nL1N3ML198, nL4N3ML1AP, nL1N3ML028
Powell-speak nL1N3ML16F, US data nL1N3ML0OH, for more click on FXBUZ
USD/JPY: https://tmsnrt.rs/3AIW7eg
Yield on US Treasury 10s: https://tmsnrt.rs/4frpLDR
Rates and inflation: https://tmsnrt.rs/3U8HdD2
(Haruya Ida is a Reuters market analyst. The views expressed are his own)
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