USD/JPY expected to be supported near 120.50 – OCBC

FXStreet (Edinburgh) - Occasional pullbacks in the pair are seen well contained around the mid-120.00s ahead of the 120.00 handle.

Key Quotes

“This morning, a surprise jump Japan’s Sep industrial production (+1.0% mom) caused the USD-JPY to relapse lower but the flattening of the US curve and resultant pull from the interest differential front (and impetus from the option front) may ensure a market reluctance to test the downside excessively”.

“The 55-day MA (120.51) and 120.00 floor may cushion ahead of the BOJ MPC tomorrow”.