OctaFX | OctaFX Forex Broker
Open trading account
Back

USD/JPY drops sharply 120.30 on Japan’s Honda

FXStreet (Mumbai) - A sudden bout of buying interest was seen around the Japanese yen following Japan’s PM adviser Honda’s comments, now pushing USD/JPY to fresh session lows.

USD/JPY tanks nearly 40 pips in a knee-jerk

Currently, the USD/JPY pair drops -0.25% to fresh session low of 120.36, fading a spike to 120.77 session highs. The USD/JPY pair extends the correction and witnessed renewed sell-off after the yen spiked on Japan’s PM adviser Honda’s hawkish comments.

Mr. Honda noted that, there is “no need for additional BOJ easing now,” squashing market expectations of BOJ announcing additional stimulus at its monetary policy meeting next week.

Moreover, the yen also benefited from the upbeat flash manufacturing PMI readings released earlier on the day. While broad based US dollar retreat on profit0taking after the recent strength also weighs on the major.

Meanwhile, focus now shifts towards next week’s FOMC and BOJ decisions amid a data-deficient macro calendar today.

USD/JPY Technical levels to consider

The pair dropped from 120.70 levels and now finds the immediate support might be located at 120.18 (50-DMA), below which 120 (round number) would be tested. While to the upside, the next resistance is located at 120.73 (10-DMA). Above the last, the pair could climb further towards 121 (Today’s High).

Dovish ECB signals more easing, market rally marches on – Deutsche Bank

Research Team at Deutsche Bank, suggest that the ECB message was more dovish than we expected and it did not announce a new policy but it went as close as possible to pre-committing to a December policy easing – by highlighting the risk of a slower return to the inflation target and signaling that the Governing Council is gearing up to act (imminently).
Read more Previous

UK: Surprise sales surge strengthening the case for rate hike - ING

James Knightley Senior Economist at ING, notes that the UK retail sales bounced sharply in September, boosted by the Rugby World Cup, enhancing the case for higher interest rates.
Read more Next
Start livechat