FOREX: USDJPY Prints Fresh 2-Month Low at 149.71
Feb-20 13:59
- Weakness for the broad dollar indices extended in the aftermath of the US data, most notably against the Japanese yen, extending the evident themes overnight. USDJPY declines on the session briefly reached 1.16%, with the pair printing a fresh two-month low of 149.71.
- Today’s low matched closely with 149.69, the Dec 9 low, and spot has recovered back above the 150 handle in most recent trade.
- Overall, a bearish theme continues to dominate, with momentum being exacerbated overnight on a breach of the Feb 07 low and bear trigger at 150.93. A close below here would resume the bear cycle that started on Jan 10th, opening 148.65, the Dec 3 low and a key support.
- Japan continues to be a key focus for market participants following the firmer-than-expected GDP data earlier in the week and the associated sensitivity to BOJ tightening expectations. Overnight, BoJ Governor Ueda stated he didn't discuss rising JGB yields with PM Ishiba at their regular meeting to discuss economic matters, with some analysts suggesting some comfort around the broader tightening BoJ backdrop.
- With that in mind, National CPI data for Japan is due tonight, with the Tokyo readings due next week.
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