Yen Traders Exercise Caution Ahead of BoJ
| Action Insight Mid-Day Report 12-18-23 |
Yen Traders Exercise Caution Ahead of BoJ |
Japanese Yen is extending its broad-based pullback today. This movement appears to be a strategic response from traders lightening their positions in anticipation of the upcoming BoJ policy decision. Although a rate hike by the BoJ seems highly unlikely at this stage, there is speculation about potential adjustments in the central bank's communication. These changes are anticipated to lay the groundwork for concluding the yield curve control policy in January, followed by a possible rate hike in April to exit the prolonged phase of negative interest rates. However, given the BoJ's history of unexpected moves, traders are bracing themselves for substantial volatility, regardless of the decision made... |
USD/JPY Mid-Day Outlook Daily Pivots: (S1) 141.57; (P) 142.02; (R1) 142.61; More... USD/JPY is still extending consolidation from 140.95 and intraday bias remains neutral. Stronger recovery cannot be ruled out. But upside should be limited well below 146.58 resistance to bring another decline. On the downside, break of 140.94 will resume the fall from 151.89 to next fibonacci level at 136.63. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 20:00 | NZD | Westpac Consumer Survey Q4 | 88.9 | 80.2 | | 21:30 | NZD | Business NZ PSI Nov | 51.2 | 48.9 | 49.2 | | 09:00 | EUR | Germany IFO Business Climate Dec | 86.4 | 87.8 | 87.3 | | 09:00 | EUR | Germany IFO Current Assessment Dec | 88.5 | 89.5 | 89.4 | | 09:00 | EUR | Germany IFO Expectations Dec | 84.3 | 85.8 | 85.2 | | 13:30 | CAD | New Housing Price Index M/M Nov | -0.20% | 0.10% | 0.00% | | 15:00 | USD | NAHB Housing Market Index Dec | 37 | 34 |
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