JPY outperforming as Tokyo CPI corporations expectations for continued BoJ tightening – Scotiabank
Japanese Yen (JPY) is powerful and outperforming all the G10 currencies, coming into Friday’s NA session with a 0.3% acquire towards the US Greenback (USD), Scotiabank’s Chief FX Strategist Shaun Osborne notes.
Longer-term development for USD/JPY stays bearish
“A run of stronger than anticipated (Tokyo) CPI, industrial manufacturing, and retail gross sales knowledge was chargeable for the JPY’s Asian session positive factors as market contributors thought of their implications for the following BoJ coverage assembly on June 17.”
“The Tokyo CPI print was most essential, printing 3.6% y/y to succeed in its highest degree since (the post-pandemic surge) of late 2022/early 2023. Japan’s authorities bond market took the discharge in stride, and a JGB public sale of two 12 months notes attracted its highest bid-to-cover ratio in 4 months.”
“The longer-term development for USD/JPY stays bearish nonetheless near-term technicals are impartial as we await a break of the current vary roughly sure between 140 and the mid-148 space.”
