JPY: USD/JPY Challenged Around 157-159 Amid Market Wary of Intervention
The USD/JPY has stalled toward 158.00 with reports of potential BOJ intervention, following a range of 156.83-157.78 and a broader market sentiment influenced by a dovish BOJ stance and hawkish Fed signals. Support has been found around 149-152, with technical testing of 157.00-159.00. The market is reacting to differing monetary policy signals and options expiries at key strikes.
45. 00 as the market stayed wary of intervention after reports that the BOJ may have conducted a rate check around that level on Friday night. Last week was not a good one for the yen, and the tentative gains that had begun to build lost traction. CFTC data showed the market turning long for the first time, while a dovish hike linked to the Takaichi appointments and a BOJ that is not giving a signal on the timing of the next hike, alongside a hawkish Fed, is not a setup that encourages buyers to add to positions.
The 149-152 area has again held as solid support. 00 area, which technically looks important now and would have been an ideal place to fade had the BOJ given the market any reason to do so. Japan is currently on a three-day holiday. * MNI FED: Boston's Collins: Increased Likelihood Of Above-Target Inflation Scenarios Boston Fed President Collins (non-FOMC voter until 2028; she's around the median of the FOMC in terms of hawkishness/dovishness) wrote in a On LinkedIn on Tuesday, she said she supported last week’s rate hike.
She also recalled comments she wrote in August, saying: “Data in the weeks ahead should shed additional light on the trajectory of underlying inflation - and the extent to which it is receding,” and that without evidence of meaningful inflation progress, it would be appropriate to tighten policy soon to deliver price stability. 23b), according to DTCC data. 52b Sept 24), The USD/JPY Average True Range for the last 10 trading days is 110 points. Fig 1: USD/JPY spot daily chart.
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