Yen Dominates with Strong Rally, USD/JPY Enters Bearish Trend Reversal
| Action Insight Mid-Day Report 12-7-23 |
Yen Dominates with Strong Rally, USD/JPY Enters Bearish Trend Reversal |
Yen is trading as the runaway leader in today's market, dominating traders' focus. This rally was initially triggered by comments from BoJ Governor Kazuo Ueda regarding the central bank's potential strategies upon exiting negative interest rates. Buying momentum for then intensified further following Ueda's meeting with Japanese Prime Minister Fumio Kishida to discuss his monetary policy stance. While the specifics of the conversation between Ueda and Kishida were not disclosed, some market observers perceive this as strategic "staged" move to signal potential policy shift by BoJ. This speculation is reflected in the overnight-indexed swaps, which now price in over 40% chance of BoJ ending its negative rate policy at the upcoming meeting on December 18-19. This represents a significant increase from just a 3% probability two days ago.... |
USD/JPY Mid-Day Outlook Daily Pivots: (S1) 146.97; (P) 147.23; (R1) 147.57; More... USD/JPY's decline accelerates to as low as 144.53 so far and there is no sign of bottoming yet. Intraday bias remains on the downside. Sustained trading below 145.06 will carry larger bearish implication and target 142.45 fibonacci level next. On the upside, break of 146.22 minor resistance will turn intraday bias neutral and bring consolidations first. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
|---|
| 00:30 | AUD | Trade Balance (AUD) Oct | 7.13B | 7.45B | 6.79B | 6.18B | | 03:00 | CNY | Trade Balance (USD) Nov | 68.4B | 58.1B | 56.5B | | 05:00 | JPY | Leading Economic Index Oct P | 108.7 | 108.2 | 108.2 | 108.9 | | 06:45 | CHF | Unemployment Rate Nov | 2.10% | 2.10% | 2.10% | | 07:00 | EUR | Germany Industrial Production M/M Oct | -0.40% | -0.20% | -1.40% | | 07:45 | EUR | France Trade Balance (EUR) Oct | -8.6B | -8.5B | -8.9B | | 08:00 | CHF | Foreign Currency Reserves (CHF) Nov | 642B | 658B | | 09:00 | EUR | Italy Industrial Output M/M Oct | -0.20% | -0.60% | 0.00% | | 10:00 | EUR | Italy Retail Sales M/M Oct | 0.40% | 0.10% | -0.30% | | 10:00 | EUR | Eurozone GDP Q/Q Q3 F | -0.10% | -0.10% | -0.10% | | 10:00 | EUR | Eurozone Employment Change Q/Q Q3 F | 0.20% | 0.30% | 0.30% | | 12:30 | USD | Challenger Job Cuts Nov | -40.80% | 8.80% | | 13:30 | USD | Initial Jobless Claims (Dec 1) | 220K | 226K | 218K | 219K | | 13:30 | CAD | Building Permits M/M Oct | 2.30% | 1.10% | -6.50% | | 15:00 | USD | Wholesale Inventories Oct F | -0.20% | -0.20% | | 15:30 | USD | Natural Gas Storage | 8.3B | 10B |
|
|
|
