USD/JPY Skyrockets With Japan Absent From Intervention

Action Insight Mid-Day Report 10-21-22

USD/JPY Skyrockets With Japan Absent From Intervention

Dollar surges broadly today as risk sentiment turns sour again while treasury yields continue to march higher. Yen is apparently weak, with Japan absent from intervention despite the steep decline. But Sterling and Swiss Franc are worse, Commodity currencies are also turning south, with Kiwi on the weaker side. Stronger than expected retail sales data from the UK and Canada are providing no support to the CAD.

Technically, USD/CHF's strong rally today confirms up trend resumption. The question is when EUR/USD and GBP/USD would follow. Break of 0.9630 minor support in EUR/USD and 1.0922 minor support in GBP/USD will argue that both are ready for at least a retest on recent lows at 0.9534 and 1.0351.

In Europe, at the time of writing, FTSE is down -1.02%. DAX is down -1.51%. CAC is down -1.97%. Germany 10-year yield is up 0.0905 at 2.493. Earlier in Asia, Nikkei dropped -0.43%. Hong Kong HSI dropped -0.42%. China Shanghai SSE rose 0.13%. Singapore Strait Times rose 0.18%. Japan 10-year JGB yield rose 0.0024 to 0.256.

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Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol

USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 149.71; (P) 150.00; (R1) 150.44; More...

USD/JPY's rally accelerates to as high as 151.93 so far. Intraday bias remains on the upside. Next target for the up trend is 100% projection of 130.38 to 140.33 from 145.89 at 155.84 next. On the downside, below 150.07 minor support will turn intraday bias neutral first. But near term outlook will remain bullish as long as 145.89 resistance turned support holds.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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GMT Ccy Events Actual Forecast Previous Revised
21:45 NZD Trade Balance (NZD) Sep -1615M -1413M -2447M -2625M
23:01 GBP GfK Consumer Confidence Oct -47 -52 -49
23:30 JPY National CPI Core Y/Y Sep 3.00% 3.00% 2.80%
06:00 GBP Retail Sales M/M Sep -1.40% -0.50% -1.60% -1.70%
06:00 GBP Retail Sales Y/Y Sep -6.90% -5.00% -5.40% -5.60%
06:00 GBP Retail Sales ex-Fuel M/M Sep -1.50% -0.30% -1.60% -1.70%
06:00 GBP Retail Sales ex-Fuel Y/Y Sep -6.20% -4.10% -5.00% -5.30%
06:00 GBP Public Sector Net Borrowing (GBP) Sep 19.2B 12.3B 11.1B 8.6B
12:30 CAD New Housing Price Index M/M Sep -0.10% 0.20% 0.10%
12:30 CAD Retail Sales M/M Aug 0.70% 0.20% -2.50%
12:30 CAD Retail Sales ex Autos M/M Aug 0.70% 0.30% -3.10%
14:00 EUR Eurozone Consumer Confidence Oct P -30.3 -28.8