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BUZZ-USD/JPY in range, settling into lower range post-BOJ

ReutersJan 27, 2025 12:31 AM

  • USD/JPY settling into its recent, lower core 154.50-156.50 range post-BOJ

  • Friday saw trade between 154.85-156.58, Asia so far today 155.59-84 EBS

  • Base still in place around ascending 55-DMA at 154.98 today

  • Market heaviness in place between 156.50-157.00, offers likely large

  • BOJ seen more hawkish than thought, data-dependent, could move in March

  • Fed seen less dovish than previously thought, could hold this week, in Q1

  • JGB-US Treasury rate differentials narrower, to lessen demand for US paper

  • US Treasury 2s @4.260%, 10s @4.596%, JGB 2s @0.712%, 10s @1.222%

  • Option expiries today massive 155.00 $1 bln, 155.95-156.00 $2.1 bln

  • More at 155.00, at and above 156.00 into month-end, to contain spot this wk?

  • Maybe especially so with Australia holiday today, Chinese New Year this week

  • Related comments nL2N3OI020, nL2N3OK0SB, nL2N3OK0EK, nL2N3OK0AD

  • And nL2N3OK09T, nL2N3OK09S, also nL2N3OK0XK, on the Fed nL2N3OI0W3

  • US markets nL2N3OK0XM, nL3N3OK1OM, nL3N3OK18S, nL2N3OK02D

  • On the US economy nL6N3OK0PJ, for more click on FXBUZ

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