JPY stuck in tight consolidation as volatility erodes – Scotiabank
|The Japanese Yen (JPY) remains incredibly quiet as it extends the tight consolidation that we’ve observed over the past couple of weeks, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
Yen vols slide toward multi-year lows
"JPY vols are softening across a range of time horizons and the one month measure is threatening a push through the December low (7.44%) to levels last seen in March 2024. Domestic releases have been soft, with notable weakness in the labor cash earnings data for November."
"JGB yields have taken note and are down 4-6bpts across the curve. The JPY appears vulnerable to near-term weakness if the BoJ acknowledges the softer data and pushes back on expectations for continued tightening."
"We are neutral USD/JPY awaiting a break of the ~154.50/158 range from mid-November."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.