Flows and Orders/USD/JPY

USD/JPY session outlook: Waiting for the BOJ

The BOJ’s two-day policy meeting ends today and we should have a policy announcement in early afternoon (no change expected by all 22 economists polled by Bloomberg). The important level to watch is yesterdays highs near 81.55/60 and I believe there is still some decent selling interest near that level. The immediate upside pressure in EUR/JPY has also been eased after the Moody’s French news. I’d play an 81.10/60 range in the short-term.

  1. Strong resistance at 81.55-60 mentioned above is fibo 61.8% of high/low 2012, I expect a correction down to 80.70 initially.
    It’s still hard to believe BOJ would let inflation rate up to 3% without simulating risk effect…IMHO

  2. Yeah if Abe does a flip-flop some time this week it should be good for 50 pips I reckon 🙂
    I hope so anyway, I want a nice dip to buy back more USD/JPY and CNH/JPY for the long term.

    1. I have access via the retail FX subsidiary of Central Tanshi, which is apparently a big money market broker. Their retail outlet started offering CNH/JPY around July this year. It is the first one in Japan to do so, and I’ve not heard of any others offering it so far.
      The spread is too wide but the swap rates are relatively steady and favourable so far. I figure it is fine to be short yen, but don’t want to be in USD long term that much either! So it’s a nice alternative to have.

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