After reestablishing eight-month lows around 127.24, USD/JPY is maintaining the most recent decline below 127.50.
On Monday, the start of the week, bears are still in charge as the Japanese Yen maintains its upward trend.
The outlook for the Yen is being supported by expectations that the Bank of Japan (BoJ) would shock the markets by making a hawkish pivot at its policy meeting this week, especially after the Japanese central bank failed to defend its yield curve control (YCC) policy for the second day in a row.
The 10-year JGB yield increased by 1 basis point to 0.510%, above the policy band’s 0.5% upper limit.
The US Dollar is now trending widely down as a result of the recent sell-off in the USD/JPY pair, with the US Dollar Index down 0.36% on the at 101.84 as of the time of publication.
Due to limited liquidity and the fact that the US market is closed on Monday in celebration of Martin Luther King Jr.
Day, big movements are being distorted. The BoJ monetary policy announcements and the US Retail Sales data remain the two major event risks for the spot this week.
The BoJ unexpectedly increased the range for the 10-year bond rate last month from its aim of 0% to 0.5% up and down.
|
Daily SMA20 |
132.25 |
|
Daily SMA50 |
136.3 |
|
Daily SMA100 |
140.63 |
|
Daily SMA200 |
136.64 |
