Yen Steady after BoJ, Treasury Yields Extending Correction
| Action Insight Daily Report 10-28-22 |
Yen Steady after BoJ, Treasury Yields Extending Correction |
The markets are relatively quiet in Asia today. Yen is steady after BoJ stands pat as widely expected. Yet, there is some upside prospect for Yen if global benchmark yields continue to correct lower. Dollar remains the worst performer and today's PCE inflation data is unlikely to save it. Traders would more likely look beyond the data to next week's FOMC decision and guidance. There is so far no extended selloff in Euro after the post-ECB dip. Commodity currencies are firmer but lack follow through buying too. Technically, US 10-year yield's close below 3.992 resistance turned support argues that it's already correcting the rise from 2.525 to 4.333. There is prospect of deeper pull back towards 55 day EMA (now at 3.624). If happens, that could help drag down Yen pairs, in particular USD/JPY towards 55 day EMA (now at 143.52). In Asia, at the time of writing, Nikkei is down -0.77%. Hong Kong HSI is down -2.73%. China Shanghai SSE is down -1.25%. Singapore Strait Times is up 1.64%. Japan 10-year JGB yield is down -0.0116 at 0.242. Overnight, DOW rose 0.61%. S&P 500 dropped -0.61%. NASDAQ dropped -1.63%. 10-year yield dropped -0.078 to 3.937. |
USD/JPY Daily Outlook Daily Pivots: (S1) 145.62; (P) 147.01; (R1) 147.80; More... USD/JPY is extending the consolidation pattern from 151.93 and intraday bias remains neutral. Deeper pull back could be seen, but downside is expected to be contained by 38.2% retracement of 130.38 to 151.93 at 143.69 to bring rebound. On the upside, above 149.69 minor resistance will bring stronger rebound back towards 151.93 high. But upside should be limited there to continue the corrective pattern. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:30 | JPY | Tokyo CPI Core Y/Y Oct | 3.40% | 3.20% | 2.80% | | 23:30 | JPY | Unemployment Rate Sep | 2.60% | 2.50% | 2.50% | | 00:30 | AUD | PPI Q/Q Q3 | 1.90% | 1.50% | 1.40% | | 00:30 | AUD | PPI Y/Y Q3 | 6.40% | 6.40% | 5.60% | | 03:00 | JPY | BoJ Interest Rate Decision | -0.10% | -0.10% | -0.10% | | 05:30 | EUR | France Consumer Spending M/M Sep | 1.20% | 1.20% | 0.00% | 0.10% | | 05:30 | EUR | France GDP Q/Q Q3 P | 0.20% | 0.20% | 0.50% | | 07:00 | CHF | KOF Leading Indicator Oct | 93 | 93.8 | | 08:00 | EUR | Germany GDP Q/Q Q3 P | -0.20% | 0.10% | | 09:00 | EUR | Eurozone Economic Sentiment Indicator Oct | 92.5 | 93.7 | | 09:00 | EUR | Eurozone Services Sentiment Oct | 3.3 | 4.9 | | 09:00 | EUR | Eurozone Industrial Confidence Oct | -2 | -0.4 | | 09:00 | EUR | Eurozone Consumer Confidence Oct F | -27.6 | -27.6 | | 12:00 | EUR | Germany CPI M/M Oct P | 0.60% | 1.90% | | 12:00 | EUR | Germany CPI Y/Y Oct P | 10.10% | 10.00% | | 12:30 | CAD | GDP M/M Aug | 0.00% | 0.10% | | 12:30 | USD | Personal Income M/M Sep | 0.30% | 0.30% | | 12:30 | USD | Personal Spending Sep | 0.40% | 0.40% | | 12:30 | USD | PCE Price Index M/M Sep | 0.50% | 0.30% | | 12:30 | USD | PCE Price Index Y/Y Sep | 5.80% | 6.20% | | 12:30 | USD | Core PCE Price Index M/M Sep | 0.50% | 0.60% | | 12:30 | USD | Core PCE Price Index Y/Y Sep | 5.20% | 4.90% | | 12:30 | USD | Employment Cost Index Q3 | 1.30% | 1.30% | | 14:00 | USD | Pending Home Sales M/M Sep | -5.30% | -2.00% | | 14:00 | USD | Michigan Consumer Sentiment Index Oct F | 59.8 | 59.8 |
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