USD/JPY nears multi-month high after BOJ Summary of Opinions, Japan Machinery Orders
- USD/JPY keeps the upside intact as Tokyo open witnesses additional downside pressure on the Japanese Yen (JPY).
- BOJ holds bearish bias, Japan’s Machinery Orders decline below forecasts.
- US-China trade headlines remain mixed, markets continue rushing to the USD.
With the BOJ holding its bearish bias intact and Japanese data falling short of market expectations, USD/JPY gets an additional boost to its north-run. The pair takes the bids to 109.20 by the press time of Tokyo open on Monday.
Japan’s September month Machinery Orders missed market forecasts on MoM and YoY basis. While the monthly reading fell below +0.9% expected and -2.4% prior to -2.9%, yearly numbers seem a bit less negative with +5.1% growth figures against 7.9% consensus and -14.5% earlier readouts.
Also, Bank of Japan’s (BOJ) Summary of Opinions of its October monthly meeting shows an intact bearish bias amid the policymakers while citing the need to clarify the downward bias in policy rates.
While Friday’s upbeat consumer sentiment data from the United States (US) added strength to the US dollar (USD), an overall positive tone of the recent comments from the Federal Reserve (Fed) officials keeps the greenback as market’s favorite safe-haven off-late.
There have been mixed signs concerning the US-China trade relations with the dragon nation criticizing the US trade protectionism and the US-side stepping back from much-anticipated tariff reversal.
Given the absence of the US traders from markets, due to the Veterans Day holiday, coupled with the recently out data, investors have no major statistics/event up for publishing on the economic calendar.
Additionally, this week’s inflation numbers from the US and the Fed Chair’s testimony could also push traders to stay away from big positions ahead of the events.
Technical Analysis
A daily closing beyond 109.30/32 becomes necessary for bulls to aim for May-end top nearing 109.95/110.00, until then the risk of a pullback to 109.00, followed by monthly low near 107.90, remains on the cards.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
