JGB futures maintain downside pressure amid inflation data and BoJ hike anticipation
Japanese Government Bond futures continue their primary downtrend, affected by US inflation data and market positioning ahead of the Bank of Japan's upcoming policy decision. The futures pierced the support at 125.91, confirming the bearish trend. Key resistance at 128.42 must be overcome for a potential short-term reversal.
0% retrace of the 1990 - 2020 major bull leg Downside pressure in JGB futures resumed on the back of inflationary pressures seen in US PPI and CPI data, and as markets position for the expected BoJ hike. 91, the Aug 17 low. That move lower confirms continuation of the primary downtrend. 42, the Jun 15 high.
A move above that level is needed to signal a short-term reversal.