Japanese Yen: JPY underperforms into BoJ – Scotiabank

FXStreet Insights Team FXStreet

Scotiabank strategists Shaun Osborne and Eric Theoret highlight a weaker Japanese Yen (JPY), down 0.7% versus the US Dollar (USD) and underperforming G10 peers alongside New Zealand Dollar (NZD) and Swedish Krona (SEK). Markets are focused on Friday’s Bank of Japan (BoJ) meeting, where a hike is seen as fully priced. For USD/JPY, they flag recent lows around 153, additional support near 152, and resistance above 155, with trade and Consumer Price Index (CPI) data also due.

Key BoJ week levels

"The yen is weak, down a notable 0.7% vs. the USD and underperforming most G10 currencies along with the high-beta pro-risk NZD and SEK."

"The relative performance suggests a focus on factors beyond sentiment, as market participants eye Friday’s BoJ and its widely anticipated and fully priced hike."

"Fundamental releases have been limited, though we note Wednesday’s trade and Friday’s CPI data. For USD/JPY, we continue to note the recent lows around 153 and see additional support closer to 152."

"We see resistance above 155."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

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FXStreet Insights Team

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