Japanese Yen: Weak as markets price BoJ hike against US Dollar – Scotiabank

Scotiabank strategists Shaun Osborne and Eric Theoret observe USD/JPY trading higher as the Japanese Yen underperforms G10 peers ahead of trade, Consumer Price Index (CPI) and the Bank of Japan (BoJ) decision. A BoJ hike is fully priced, with risks focused on guidance for future moves. They emphasize support around 153 and 152, while identifying 155 as an important resistance level for the pair.

Key levels eyed into BoJ

"A hike is widely expected and fully priced, with risk centered around the central bank’s tone and its guidance on the pace of future hikes with one additional hike almost fully priced before year end."

"The near-term focus remains centered on broader themes including the market tone and the Fed, as market participants balance their attention with domestic developments including the near-term release of trade data (7:50pm ET) and CPI (Friday) ahead of the BoJ policy decision at the end of the week."

"The 155 level remains an important level of anticipated resistance."

"For USD/JPY, we continue to highlight the importance of recent support around 153, with additional support expected closer to 152."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)