Geopolitical escalation in Center East noticed protected haven proxies, together with JPY strengthening final Friday. USD/JPY was final at 144.12 ranges, OCBC’s FX analysts Frances Cheung and Christopher Wong word.
2-way trades probably within the interim
“USD/JPY touched a low of 142.80 earlier than rebounding. Surge in oil costs noticed UST yields rising, resulting in USD/JPY’s rebound. BoJ MPC on Tue could complicate JPY’s protected haven story. Governor Ueda’s current feedback that BoJ remains to be a long way from 2% objective appeared that the timing of subsequent hike could also be pushed again.”
“Though the timing of BoJ coverage normalisation could also be deferred, coverage normalisation isn’t derailed. Broadening value strain and wage development counsel that BoJ’s subsequent plan of action stays a hike however within the interim, BoJ could want to remain on maintain because of uncertainties on outlook and tariff.”
“However, we stay watchful for any shock hawkish tone as which will pose downward strain on the pair. Gentle bullish momentum on each day chart intact whereas RSI rose. 2-way trades probably within the interim. Assist at 144 (21, 50 DMAs), 142.50 ranges. Resistance at 145.10, 145.50 ranges.”
