USD/JPY – The Greenback soared to an overnight and near 10-month high at 148.41 from Friday’s 147.58 before settling at 148.37 at the New York close. On Friday, the Bank of Japan maintained its ultra-easy policy. Some market participants had expected a policy shift. The overnight low traded was 147.50.
Trading perspective:
While the Dollar Index (USD/DXY) finished stronger on Friday, much of that strength was against the Japanese Yen.
The Japanese currency carries a 13.6% weight in the Dollar Index. Against the other major currencies, the Greenback was mixed.
The easing of US treasury bond yields following last week’s climb will keep a lid on the Greenback.
Expect the Dollar to drift lower against most of its Rivals in the earlier part of this week.
USD/JPY – Against the Japanese Yen, the Greenback climbed to an overnight and near 10-month high at 148.41 before to 148.37. It was more a case of Yen weakness than US Dollar strength due to disappointment from some market participants following the BOJ’s rate decision on Friday. Some market participants expected the BOJ to drop its guidance to take additional easing measures. Immediate resistance today is found at 148.50 followed by 148.80. Immediate support lies at 148.00, 147.70 and 147.40. Look for a choppy day ahead, likely range: 147.50-148.50. Expect more rhetoric against Yen weakness from Japan Inc.
